Credit Card Minimum Payment Definition
In the wake of the Great Recession, many people are looking for ways to recognise their finances. Most of them forgot professional help because they feel that it is too expensive and will only drive them further into debt. However, many of these people do not take full advantage of the resources that are easily available to them online
Minimum Payment Calculator
One of the most helpful resources is the credit card minimum payment calculator. A minimum payment credit card calculator can tell you exactly how much money you must put towards a credit card account every month to pay off that account within a specified period of time.
The reason that an independent, third-party minimum payment calculator is a good idea for everyone is that credit card companies do not have your best interests at heart when they give you your minimum payment bill for the month. Often, these minimum payments are interest only payments. Even if you are paying off principal, the minimum payments are often set up so that you will not pay off your balance for an extremely long period of time.
Using a credit card minimum payment calculator will keep you from having to calculate the actual minimum payment that you have to pay in order to get rid of your debt entirely. You can make completely sure to pay off your balance within the period of time that you specify. It is absolutely essential to good debt management to create a time frame for yourself in which you pay your own debts
The inputs on the credit card minimum payment calculator are placed in order for maximum efficiency.
These inputs are:
- Balanced Owed (AED)
- Interest Rate
- Minimum Payment as Percentage per Month
- Minimum Payment as Total (AED) Amount per Month.
Placing these inputs into the appropriate spaces and clicking the button that says “calculate” will provide you with the amount of payments that you have to make, the total amount of money that you will spend on the loan, and the amount of money that will be charged to you in interest.
With this information, you can make more informed decisions about how to oversee your total finances.