What Is A Credit Card Calculator And How Can It Help Me?

Using a credit card calculator can help you determine how long it will take you to pay off an existing credit card balance. This can help you achieve more of a sense of responsibility for your debts. Some credit card calculators allow you keep track of how much you spend each month in charges to your credit card for groceries, gas and other expenses.

Using a credit card calculator is a wise decision because credit card companies often make mistakes when charging amounts to your balance. If you use a credit card calculator you will probably keep a much closer eye on your balance and will be able to spot an error as soon as it occurs. This can save you untold amounts of money in terms of interest payments.

Credit card calculators work like this: you have a webpage in which there are a number of boxes. You put into Box A how much you currently owe on your credit card. Into Box B, you enter the rate of interest you pay annually on the outstanding balance. In the next box, Box C, you enter how your minimum payment is calculated, in the next box, Box D you enter the minimum payment you make each month. In the next box, you enter the amount of money you could pay as a fixed payment each month. Then you calculate a payment table based on either your minimum payment or your proposed fixed payment.

The calculator will produce a table which shows you how long it will take to pay off your credit card bill using either form of payment.

You will be able to figure out how much you need to pay each month in order to pay off a balance of $3,000 in twelve months at an interest rate of 8.99%. It would tell you that you had to pay $263.00 each month. Sometimes a credit card calculator can tell you how much money you can save if you pay your credit card off more quickly. This can be a tremendously helpful tool for someone who is trying to stick to a budget and who does not have a lot of money but who also wishes to try to save some money. Sometimes a credit card calculator will also allow you to include an annual fee which you pay to your credit card company.

Using a credit card calculator can be a great motivator for someone who wants to pay their credit card bill off sooner rather than later. When you see how much of the money you pay each month goes to service the debt in terms of paying off the interest first you will almost certainly wish to pay it off more quickly to avoid having to pay all that interest.

You can also find credit card calculators that are comparison calculators which can make a quick comparison of a low interest rate credit card to a cash back credit card. You will be able to quickly see which credit card will actually put more money into your hands over a long period of time. Having this bit of information can make a huge difference when you are considering two different credit cards and do not know which to apply for.