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Discussion in 'Credit Talk' started by Michele Co, Aug 2, 2000.
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Try the free debt reduction planner at:
It can help you figure out what to pay first, how much and how long it will take and maybe even lower your debt. I hope this helps.
In problems of this type there are four variables:
Number of Payments
Amount of Each Payment
You can calculate one variable only if the other three are fixed. In your case, we would need to know not only the $2000 principal amount and the 21.15% interest rate, but also your desired repayment time in months. Then we could tell you the necessary amount of each monthly payment.
Obviously, if you wanted to repay the whole thing very quickly, your payment could be several hundred dollars per month. If you wanted to pay interest forever but never repay the principal, your payment would be about $35 per month. You probably want to pay some amount in between.
Just decide what your time goal is, and a calculator can give you the required payment. Or decide what a realistic payment is, and a calculator can give you the necessary time.