How long would it take to pay off a credit card balance of $5800 at 18.3% making only the minimum payments? Is there a lower bound on the minimum payment ($20)?
If you make a minimum payment of $120/mo. on a debt of $5,800 at 18% interest, it will take you 328 months to retire the debt. Basically, a little more than 27 years.
Lets see: (as an example): you owe 5,000$ @ 14 APR. * If you make the MINIMUM payment based on each months bill it will take: 25 years or so. * If you make a 100$ payment EACH month it will take you around 6 years * If you make payments two times a month @ 50.00 each it will take around 5 1/2 years.
Don't do it. Always make large payments and make them early. Use credit responsibly. http://www.creditsense.com
I came up w/ a different calcu I have this little excel spreadsheet program that calculates this stuff and according to it: If you make $120 payments on a $5800 balance at 18.3%, it will take you 88 months with one final payment of $32.27. The total amount you would of paid is $10592.27. 328*120 = $39,360 Doesn't make sense on a purchase of only $5800???? I know the program works because I entered in all the numbers for my auto loan and they came out the same, only off by a few pennies. If anyone would like this program...let me know and I'll email it you you.
