It’s so easy to get into trouble using credit cards. It seems once you accept an offer, there’s another right around the corner. Therefore, you continue to use them without stopping to think how long will it take to pay off your credit card.
Seriously, who does while enjoying a shopping spree?
Buy now and pay later... what a concept, right? Well, it’s this kind of enthusiasm banks depend on, that and the appeal of immediate gratification. The attraction of getting what you want when you want it suggests you're living the best life, but this shopping freedom isn't free.
Credit Card Consolidation Loan Calculator
To find out exactly how long it will take to pay off your card balances depends on a few points. You may have a few options that would allow you to pay off a creditor or to pay toward debt. A good credit card consolidation loan calculator can show you how much you can gain or save.
Start by adding all of your credit card balances together and put that number in the loan calculator along with the minimum payment and interest rate per card. Next, call each issuer and request the payoff time and interest rate. Now, take these numbers and put them in the box, and submit the information. The credit card consolidation loan calculator will do a comparison, so you will understand what a debt consolidation loan could mean to you.
If that will work for you, you’re off to the races. However, you might find you need to make some adjustments before a consolidation loan will perform the way you need it to.
Pay Over The Minimum Payment
Many banks allow credit card users to maintain a balance and make the minimum payments each month. The monthly payments generally are 3% of the card balance. That sounds great, but making minimum payments won’t benefit the cardholder. By paying more, you will lower the balance and reduce the total amount of interest payments you’ll make in the long run.
Choose Specific Debts to Consolidate
You might also have to be selective about which loans to include. Include the obligations with the highest interest rates as well as the card(s) closest to the credit limit. You can’t go wrong in either case because consolidating either will put amore sizable dent in your debt.
Balance Transfer Cards
If paying more than the amount due is out of the question, look for a card that allows you to transfer a balance at a lower interest rate. If you can reduce interest rates, of course, it will cut down the amount of the total balance.
Debt Consolidation Savings
The debt consolidation loan calculator works with the numbers you give it. As mentioned above, you will need to know the annual percentage rate of your credit card consolidation loan and the number of months needed to repay the loan. You will also need to fill in information about your current (personal, auto, secured or unsecured) loans or debts like the balances, payments, and APR of each of those loans. After submitting this information, the calculator will reveal the results.
You can make life simple by consolidating loan balances. How long will it take to pay off your credit card? It’s up to you to take action against your debts. For millions of people, debt consolidation has been a game-changer. It may be the best option for you too.