Credit Card Debt Calculator and How to Pay Off Debt
You can always count on interest accumulating if you carry a balance every month on your credit cards. Sure, you may still have a month or two of “free interest” left on that credit card you signed up for, but when that promotion ends, what happens then? You get hit with some charges and fees that you might not have expected. No one really thinks about adding interest when they make purchases with their credit cards. They just think it’s going to cost whatever the purchase price is. But that’s a big mistake thinking that way.
Spending beyond your means and paying too little per month on your credit card balances can lead to financial disaster. That’s why it’s important to utilize free online tools such as a Credit Card Debt Calculator so you can find out the “real” cost of that purchase with the interest added in. Our personal online financial calculator will help you analyze the added accumulation of interest on top of your everyday credit card purchases.
Who Can Benefit from using this Online Financial Calculator?
Anyone who uses a credit card for everyday purchases such as gas, groceries, coffee, lunchtime meals, dinner with friends, etc. can benefit from using this free tool. It’s especially important to people that carry a balance on their cards every month. It will let them know how much interest they are accumulating on just one purchase. The use of our online Credit Card Debt Calculator can prove to be a great advantage to those looking for a smarter way to handle their finances.
How Do You Use this Free Calculator? Is it Easy to Understand?
The free calculator is very simple to use and easy to understand. First, you input the Total Purchase Amount (how much you charged to your credit card). Next, you enter your Credit Card APR rate as a percentage (the annual interest rate charged by your credit card, for example: 15.6%). Then, enter your Planned Monthly Payment (how much you intend to pay each month to pay off your credit card bill). Just hit the orange Calculate button, and your results will be shown below in a matter of seconds. It’s that quick, simple, and easy to use!
What Do I Do with this Information Now?
Your results will show you the number of months it will take to pay off that entire amount. You will also see the final month’s payment to pay it off completely, and the total finance charge that will be applied. The Total Finance Charge is the total amount of money that you have paid just towards interest. The last thing you will see is the Total “real” cost of that one purchased item. You will be able to see exactly what it cost you to buy that item with a credit card instead of just using cash or a check. This will help you make smarter money decisions, and it may make you think twice before swiping that plastic!