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What to consider when using a credit card payment calculator

Charge cards are classified as a form of revolving debt because there is no defined term. A debt calculator will advise you how long it will take to become free from debt if you pay the bear minimum. You will also be told how much you need to repay each month if you want to pay off the balance in a specific number of months.

How to use a credit card payment calculator

Total debts
It is easy to make the calculation when you just have the one card. However, in order to pay off debts, you will need to enter the amount you owe to each issuer individually. This is because the information is paired with the APR to determine the amount which you need to pay and how much of each payment goes towards clearing the interest. Credit cards APR
High interest credit cards are the ones which you need to consolidate because they accrue more debt interest and usually have higher charges than other cards. High APR credit cards cost far more to service. Minimum monthly payment
This is the bear minimum which you are obligated to pay each month, and will either be expressed as an amount or a percentage. Paying this amount will extend the life of the debt because so little of each payment goes towards reducing the principal. Pay the issuer as much as you can afford because this is how to pay off credit cards in the fastest possible time. Repayment timeframe
In order to calculate how long it will take you to become debt free, you will need to enter a specific number of months or a sum of money which you can afford to pay your creditors each month. It is very important to remember that these figures are only accurate if you do not run-up any additional debt on your card.

How to pay off credit cards

Consolidate at the lowest interest rate
Use a credit card calculator to determine whether it is in your best interest to perform debt consolidation. 0% interest cards and balance transfers
Move your debt to an interest-free credit card with a 12-month introductory offer. Make more than the minimum payment
Paying the bear minimum will mean that it will take decades to clear debt. Pay back as much as you can afford each month. Debt relief programs to clear credit card debt
Entering a debt solution will damage your credit rating. However, it will enable you to pay off credit card debt more quickly.

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