How many months will it take to payoff your credit card?
Explanation of Terms Credit Card Balance – The remaining principal balance left on your credit card Monthly Payment – The amount of the payment you are putting towards your credit card bill each month APR – The annualized interest rate you are being charged on the loan
Say you have a credit card balance of $5,000 at an interest rate of 10%. If you make monthly payments of $100 how many months will it take to payoff the balance? In this example the loan balance is 5000. The monthly payment is 200 and the interest rate is 10. In this example it would take 65 months to payoff the balance. Now let’s say you increase the payment up to $200, how will that effect the number of months until payoff? Increasing the payment would decrease the payoff to 28 months.