Credit card debt has become an extremely serious financial malady that affects countless individuals. Minimum monthly payments do little more than pay for the interest when both balances and interest rates are high. Using a credit card debt calculator is one method that can help you to keep your credit card debt from getting out of control.
Why Credit Card Balance Transfers Are Problematic
Some consumers transfer their credit card debt to new credit cards that offer lower interest rates, thinking that will solve their credit card problems, only to find that making a payment one day late can raise their interest rate even higher than it was with their old credit card company. By using a credit card debt calculator, consumers can take a more informed approach to managing their credit card debt.
What Do Credit Card Debt Calculators Do?
A credit card debt calculator can tell you a lot about your credit card debt. Before you add a purchase to your credit card, you can use a credit card debt calculator to determine how long it will take to pay off the purchase if you make the minimum monthly payment.
Consider one example. You want to buy a new flat screen television. Punching the cost of the television into your credit card debt calculator, however, reveals that, if you make your minimum monthly payment on your credit card, you will be paying for that television for the next twenty years.
There are very few people using twenty year old televisions in their homes. In this instance, a credit card debt calculator can show you that, unless you are sure that you can make more than your minimum monthly payment, it does not make sense to purchase this television with your credit card.
With this information, you can use a credit card debt calculator to estimate the useful life of your purchases and adjust you monthly payments so that they align with the product’s useful life. Using the flat screen TV example, a credit card debt calculator will tell you how much you need to pay each month on your credit card so you can pay it off before it breaks down or needs to be replaced.
Author: William BlakeThis author has published 28 articles so far.