PAY IT DOWN CALCULATOR FOR FREE

The interest rate used for the calculation is constant for the life of the loan however, for a loan which has an interest only period, the interest rate for the interest only period may be different from that used for the period during which principal is repaid.

Extra repayments, including lump sum payments, are assumed to be paid at the same time as standard repayments.

Standard repayments are paid at the end of each period.

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PAY IT DOWN CALCULATOR FOR FREE

To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective. Common debt consolidation loans include shifting your balance to a new card with a 0% APR offer or taking out a personal loan to pay off the credit card balances.

This can make it easier to track since there is just one monthly payment and if the new balance is at a lower interest rate, it can help you pay off your debt faster too. What Is Credit Card Debt Consolidation?Ĭredit card debt consolidation is where you combine all of your credit card loans into one balance. You can use our calculator above to test out various pay off scenarios. The amount of time it takes to pay off credit card debt depends on a combination of factors including how much debt you have, the interest you’re paying on that debt, how much you can afford to pay towards it and the debt pay off method you choose. How long will it take to pay off my credit card? Then you have just one monthly payment to make at a lower interest rate. One other approach is a debt consolidation loan, which is where you take out a new, lower interest loan and use it to pay off existing debts. This may take you longer than the snowball approach, but over time you’ll pay less interest.

With the avalanche method, you’ll make the biggest payments to the card that has the highest interest rate. Some find this way gives them the psychological boost they need to stick to their debt repayment plan. With the snowball method you’ll pay off the card with the smallest balance first, then moving on to the next card with the smallest amount and repeating until the debts are paid off. Two popular approaches are the debt snowball method and the debt avalanche method. But for those who have debt that feels unmanageable, making a plan is the best way to start. The simplest way for those who have the funds available is to pay off the entire balance in one lump sum. There are several approaches to paying off credit card debt.

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