Debt Management Program. Reduce your Debt with CAPC Debt Consolidation Programs
















 
The Credit Card Minimum Monthly Payment
What You Don't know Will Hurt You!

Have you ever noticed how every month your credit card's minimum monthly payment goes down? Credit card providers base your minimum payment on your current balance, which in the short-term appears great because your overall payment is always going down. But is it really that great? Let's look at what this practice really means in the long-run for your current credit card debt in terms of total cost and time.

Let use an example credit card with

  • Balance of $5,000
  • APR of 15.99%
  • Current minimum monthly payment of $110
Below are the total costs in time and interest for this credit card if you the consumer only paid the minimum monthly amount each month as required by your provider.
  • Almost 25 years to pay off
  • Total payments of $12,006
  • Total interest paid to the credit card company $7,006

From this example, you can see that this initial $5,000 has cost you ALOT more in the long run by having paid only the minimum monthly amount required of your monthly statements. How can you prevent this from happening to you? By reducing both the time required to pay off the debt and the interest charges this debt accrues.

How to Reduce Your Payoff Time and Interest Charges

There are ways to reduce your time and interest paid on that credit card. Lets continue to use our example credit card with

  • Balance of $5,000
  • APR of 15.99%
  • Current minimum monthly payment of $110

Payoff Fast Payoff Faster
By just paying $25 extra above the minimum payment every month our example credit card pays off in:
  • About 9.25 years
  • Total payments of $8,248
  • Total interest paid to the credit card company $3,248
By paying our example $110 exactly every month instead of the minimum payment, our example credit card pays off in:
  • Almost 6 years
  • Total payments of $7,810
  • Total interest paid to the credit card company $2,810

Credit Card Calculator - What is it REALLY Costing You?

Try our handy free credit card calculator to see just how much that credit card is going to cost you, or to see how you can pay off your existing credit card debt a bit faster. If you find that you won't be able to afford that credit card after all, then request a Free Debt Management Quote from CAPC and let us show you how to lower or eliminate your consumer credit card debt today!

 
Current Payment:
 
Current APR: Credit Costs:
Current Balance:
Total Time: 
Total Payments: 
Total Interest: 
Add $ To Minimum Payment:
Show me what happens if I pay the same every month instead of the paying only the minimum payment.
** The time to payoff is an approximate amount. It does not add additional charges like late fees, or insurance. **
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