If I have a balance of $351 on a credit card and the interest rate is 29.99 % APR how much will it take me to pay it off if the min. payment right now is $50. Also, How much money will I lose by not paying it off right away? I do have some savings I could pay it off with.
2007-01-19 09:45:01 · 9 answers · asked by Question Girl 3 in Business & Finance ➔ Credit
your APR is ridiculous. suzeorman.com has a great calculator for that. the math is too complicated for me, but suze can handle it
2007-01-19 10:09:14 · answer #1 · answered by Michele 2 · 0⤊ 1⤋
The 29.99% APR equals 2.499% interest charged on the remaining balance per month. For $351, that equals $8.77 in the first month IF your credit card is using the simple interest method of calculating. Seeing as the shysters are already charging loan shark rates, they're probably using the two-cycle method which gives them more interest each month.
That means just over $41 goes to pay off your balance each month, so rough guess payoff is 8.5 months if you pay $50 each month.
Paying the balance off now will save you just over $75 in finance charges.
Pros and cons: Based on your interest rate, your credit history is either non-existent or has some late payments involved. Paying off the balance now does nothing to restore the credit history. Making the payments over the next 8 months on time (not even a day late) can help improve your credit score.
2007-01-19 18:09:56 · answer #2 · answered by WiseOwl 2 · 2⤊ 0⤋
In answer to your first question it will take 8 months to pay it off completely. But if you only pay the minimum it will take longer because as the balance goes down, so does the minimum payment. So this 8 months is assuming you are always going to pay $50 a month.
But since the intrest rate is so high if you can pay it off do that. It will save you about $49 in interest (50*8 = $400 - $351 = $49) using some quick calculations, your last month payment will not be $50 but this gives you an idea.
Here is a good calculator to use.
http://www.bankrate.com/brm/calc/creditcardpay.asp
2007-01-19 19:47:52 · answer #3 · answered by OC1999 7 · 0⤊ 0⤋
It doesn't matter how long it will take to pay it off at the minimum payments. Take money out of savings and pay it off. You're losing 30% on the credit card balance. You're only earning, what, 1% to 4% at most on what's in savings? Then make the monthly $50 "payments" to build your savings back up.
2007-01-19 22:46:58 · answer #4 · answered by Faeldaz M 4 · 0⤊ 0⤋
A very long time. Just take your savings and pay it off then add the 50 per month that you would be paying on your bill and watch how fast that savings account will add up.
2007-01-19 17:53:20 · answer #5 · answered by surfer grl 5 · 0⤊ 0⤋
Pay off your card and get a better credit card! Do a Yahoo search for credit card offers, there are a lot of very good ones. 29%!!! Come on!!! Don't do that to yourself!
IF your credit is horrible, just use a debit card for the next year and pay off all your debts.
2007-01-19 18:44:04 · answer #6 · answered by MR MONEY 3 · 0⤊ 0⤋
It will take a total of 7.8 months to pay it off, for a total cost of about $390. So, about $40 in interest over 8 months.
And in your savings account, that same $350 would earn you about two bucks. So pay it off if it's actually possible.
2007-01-19 17:52:26 · answer #7 · answered by Anonymous · 1⤊ 0⤋
30%?!? Absolutely pay it off! Then, cut up the card and get one with a reasonable interest rate.
2007-01-19 17:53:49 · answer #8 · answered by ? 7 · 1⤊ 0⤋
a long time
2007-01-19 18:24:14 · answer #9 · answered by Anonymous · 0⤊ 1⤋