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How do I work out how long it will take to pay off a credit card balance?

by andii-j 07 April 2010 |

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If I have the opening balance, the amount I want to pay each month (above the minimum payment), and the APR advertised, how do I work out the number of months it would take to pay off the full balance?

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272

Swarbs posted
You go here:
http://www.whatsthecost.com/creditCard.aspx
and put the numbers in. You can only enter the amount you want to pay each month after you have clicked 'Calculate'. Another box will then appear below where you can enter this number.
Posted on 07 April 2010 | Love 3 loves Report
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frenchcoastbunny posted
A good question but perhaps a bit late in the day to be asking it.
It may not be your case, but in general one should have a view of the full implications of any borrowing, including probable repayment times, before taking any cash.
This essential part of a lenders obligation to inform is obviously fogged up in the case of rolling loans such as credit cards.
Is it not time that clarity be reintroduced in the borrowers favour ?
Posted on 08 April 2010 | Love 0 loves Report
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SmudgeButt posted
Do check your statement for the actual interest rate applied to your account - it isn't always the same as that advertised. All interest rates applicable to your account should be listed on your statement and there can be several in play at any one time - you could have a 0% balance transfer rate, a low rate for purchases, a medium rate for problems on your account like late fees and a very high rate for cash advances. And if you have a negative payment hierarchy it's usually the part with the lowest rate that your payments go to first. So I would use the highest applicable rate for the entire balance.
Also check with your card provider to find out how they charge interest - some charge on the entire purchase price until that purchase is paid off in full. So if you bought something for £1000 and were paying £100 a month your monthly interest would still be on the full £1000 even after making 9 x £100 payments. As long as you know then you can organise yourself to your best advantage rather than that of the card company.
Posted on 08 April 2010 | Love 1 love Report

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