If you’re wondering how long it will take you to pay off your credit card balance if you just pay off those low minimum payments each month, Bankrate.com offers a calculator to help you understand the true cost.
These days, your minimum payment is typically determined by interest due plus 1% of your balance.
By just paying the depreciating minimum each month, you’ll be amazed at how many months (or years!) it will take you to pay off your balance – and at how much extra you’ll pay in interest along the way!
Instead, try to turn that first monthly minimum payment into a fixed payment for each subsequent month, and watch the number of months and extra interest payments shrink!
To use Bankrate.com’s calculator, go to their website and click on the “Calculators” tab.