This is on a credit card, balance of $699, I need to figure out how much monthly payments will be. This info is all i have, apr 23.99%, daily periodic rate 0.65726% what is the average daily balance? WIth the average daily balance u multiply that by daily periodic rate of 0.065726%, corresponding 23.99% annual percentage rate times the number of days in the billing cycle. If someone needs to email me: whitleyklan@yahoo.com. thanks a million!!!
2007-09-12 13:39:28 · 11 answers · asked by momma whitley 2 in Business & Finance ➔ Credit
The minimum payment is not tied to the interest rate you are charged.
Let's look at the interest charge first. On a balance of $699, with a 23.99% APR, you will have a finance charge of about $13.97 the first month which is added to your balance.
Now the monthly payment could be 1% of your new balance, 2%, 3%... it depends on what your credit card issuer says. It's typical to be 2% or 3%. I would call the number on the back of your card and ask them how they determine the monthly payment. There is usually a
Let's say it's 2% which is not unusual. Your minimum payment would then be $14.26.
Now go back and look at the finance charge for the first month - it was $13.97. If your monthly payment is 2% of the balance, you will reduce your debt by exactly 29 cents (your $14.26 payment minus the $13.97 finance charge). And it won't change by very much in future months.
The point is that if the monthly payment is 2%, and you only pay the minimum, it will take you about 10 years to pay it off assuming you never charge anything else to the card.
2007-09-12 13:50:27 · answer #1 · answered by likepepsi 7 · 1⤊ 0⤋
When you get your statement it will show you your minimum payment. But you should NEVER just pay the minimum payment. If you do it will take decades to pay it off. You should pay as much as you can, but no less than double the minimum payment. There is not enough information here to give an exact answer, it depends on how they calculate your minimum. But it will probably be in the $15-$40 dollar range.
If you are afraid you will not even be able to make the minimum payment you need to immediatly stop using the credit card. You are just going to get yourself in trouble down the road.
2007-09-12 22:42:03 · answer #2 · answered by OC1999 7 · 0⤊ 0⤋
do you want to know what the monthly payment will be to pay it off in some fixed time period? if so, you didn't specify.
the credit card company is likely to issue a statement with some "minimum" monthly payment such that if you paid only that amount per month, it would take an incredibly long time, if ever, to pay it off.
if you are contemplating making a $699 purchase on your credit card and pay it off over time, is the purchase really worth a loan at 24% interest?
2007-09-12 20:45:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's not the perfect answer, but just a guess with a balance like that, I think minimum payments are $20-35 a month. My credit card payment was about that much.
2007-09-12 20:43:21 · answer #4 · answered by *Ms Manners* 2 · 0⤊ 0⤋
They will send you a bill with that information already done by their big computers ,
But try to pay at least 3 times what they list as minimum .
Paying minimum is just paying % and you'll end up paying thousands .
Chill , the bill is in the mail ( although you make it sound like you got it and they forgot to list the payment amount . . .
Question is confusing ) .
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2007-09-12 20:45:06 · answer #5 · answered by kate 7 · 0⤊ 0⤋
They upped the minimum payment this year to 4%. 700X.04=28
2007-09-12 21:26:58 · answer #6 · answered by Thomas K 3 · 0⤊ 0⤋
Don't worry about the minimum. With that kind of interest rate, you need to put as much as you can on that card to pay in off.
2007-09-12 21:28:29 · answer #7 · answered by bdancer222 7 · 0⤊ 0⤋
Try this link to a rate calculator
http://www.pine-grove.com/Web%20Calculators/equivalent%20rate.htm
2007-09-12 20:43:25 · answer #8 · answered by kys 4 · 0⤊ 0⤋
Probably whatever your minimum payment is.
2007-09-12 20:43:36 · answer #9 · answered by Anonymous · 1⤊ 0⤋
mult 699 by 1.65726.
2007-09-12 20:44:29 · answer #10 · answered by Smithers 1 · 0⤊ 0⤋