Do you know that you can be debt-free by using a credit card debt calculator?
Lots of people are struggling in their daily living that is aggravated by their debts. The use of credit card nowadays is more on basic necessities and less on luxuries.
However, since most consumers may tend to spend more using their credit cards, they are facing the dilemma of buying over than what they can afford to pay.
This situation can be avoided by doing proper analysis and planning to ascertain the spending capability that corresponds to income.
Knowing the relevant information regarding your credit card debt such as outstanding balance, monthly payment, interest and the remaining period of the account may not be that costly.
Credit card debt calculator can be used online through various websites that provide the software.
How Credit Card Calculator Works
The card calculator is useful to consumers in comparing credits cards basing on annual fee, APR, interest rates and other relevant information.
The aim is to assist individuals in their effort of reducing or eliminating debts through better card management, and eventually to provide relief to cardholders from the burden of credit card debts.
Different types of credit card debt calculator are available in computing for card debt payoff.
You can determine the way of optimizing debt payments, know how long would it take to pay card balance when you opt only for the minimum payment, look for a card that fits your needs for possible use in debt consolidation, or explore on other payment possibilities.
The calculator can be of assistance in creating a relevant financial plan customized to your debt situation.
Assuming you want to determine which option of balance transfers would provide the most savings. The credit card debt calculator will compute accordingly using the following information or requirements:
- Credit Cards – Several credit cards can be analyzed one by one.
- Balance – You have to know and provide the current balance of the card.
- Interest rate – Provide the APR, this interest rate will be used to calculate interests related to all future payments. It is possible that the span of time in paying off the card would be greater than that of the one calculated, assuming that you entered a low interest rate that is fixed at a limited time.
- Payment – The initial minimum payment per month. This minimum payment is computed as two-percent of the outstanding balance. Although the actual minimum payment per month can be different, this would be the typical method utilized by most credit card companies.
- Credit Limit – The amount of credit allowed for the card. The calculator does not allow credit cards with over the limit balances.
Consumers who are benefited by the credit card debt calculator should understand that it is a self-help tool for independent use and is not intended in providing investment advice.
The calculator does not guarantee accuracy of result nor its applicability to individual circumstances. Seeking personalized advice from a qualified professional is recommended for more complicated and critical financial issues.