Credit Card Debt Calculator
Are you feeling weighed down by a mountain of credit card debt that is only increasing every day? Do you wish there was some way to consider the various options when it comes to debt consolidation? To apply a similar rate to all the debt and work out the cheapest way to pay it off? This credit card debt calculator is designed to do just that, taking into account the amount you owe and the typical rate you pay on it, then considering a number of different repayment variables so as to calculate the total paid in each case. In this case, the two main options are repayment via the minimum payment and a fixed payment. It is worth researching the various figures offered by your credit card providers when it comes to debt consolidation before using the calculator.
How to use it
Once you are aware of all the figures involved, using the credit card debt calculator is relatively simple. Firstly, you must enter in the total balance of your credit card debt into the box marked “Current Balance”. The average consumer owns around 3 cards with $3,000 total debt – do not forget to consider all your credit card debt, adding it together to reach a total. On this debt, you will have an Annual Percentage Rate, or APR. The APR can swing wildly depending on the nature of the debt, so be sure you enter your current rate. The debt will be paid back on a minimum monthly payment or fixed payment schedule. Enter these, and any additional payment – then simply click on “Calculate” to work out which is the best repayment option for you.
The credit card debt calculator is relatively complicated when compared to your typical repayment calculation tools. As such, it would be a good idea to enter some figures by way of an example. The typical total credit card debt held by one person in the United States is often quoted at around $3,000, therefore we can enter this into the box marked “Current Balance”, or “Amount Owed”. Some credit card rates can be very high, but in this case we will add a low APR of 5%. For the minimum monthly payment calculation we can select 3% from the drop down menu, as opposed to a fixed amount of $200 – with an additional monthly payment of $100. Upon calculating, we find that the three figures are all fairly similar, with the lowest being a total $3,105 to be paid back.