How Can I Payoff My Credit Card Debt Sooner?
If you are in credit card debt, you might be interested in setting a goal to have that card paid off by a certain time. In order to reach that goal, however, you need to know how much money you have to send each month in order to have the card paid off by your desired date.
If you have a credit card balance of $10,000.00 on a card with a 17.500 percent APR, you might have a minimum payment set by the credit card of $250.00. If you pay the minimums, it would take you five years and one month to pay off the card. If you have a goal of paying off that card in 24 months, however, you would need to increase your payment amount to $496.83. Not only would this knock off three years and one month from your repayment term, but you would also save $3,326.12 by reducing the amount of interest you have to pay on the balance.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it’s applicability to your financial situation. Please consult your own financial advisor.