how much should i send a month if i want to pay off $5,500 dept with a 24% APR in 2 years?

Question

how much should i send a month if i want to pay off $5,500 dept with a 24% APR in 2 years

Answer 1

Is that your only debt? $290.79 Round up to $300 and you'll get it done a couple months early

You can download a loan amortization for Excel from Microsoft. templates.

If that is your only debt. If you have other debt consider looking into a debt snowball (check out http://www.geocities.com/snidecl/debtsnowball.html

and daveramsey.com

Answer 2

Whatever you do, do not divide the minimum payment in half and send in bi-weekly payments, especially if this is a credit card.

Credit cards have a 25 or 28 day billing cycle. If you send in half payments every 2 weeks, chances are a payment won't make it into the cycle and you will get a late fee for making less than the minimum payment.

Besides, it won't really save you that much in interest.

Go with the $230 + amount of interest. Throw extra money if you can. That 24% interest rate is outrageous!

Answer 3

Since math can help here instead of complex formulas or theories.

First and foremost, cut up the card and stop using it. this will make you gain ground as you make payments.

Second, 5,500 divided by 24 is $229.17. This is the amount of principle you will have to have as part of your payment.

Third, add your finance charges for the month, on top of the $229.17 and make that your payment. You will see that by making the principle go down, your finance charges each month will go down as well. If you can afford to make the principle amount larger than the $229.17, do it. It will only help you in the long run.

Each month you'll see the balance go down, and no finance charges will roll onto your balance, thus by finding the end of the tunnel for that debt.

If you want to truly help yourself, you'll track each months finance charge amounts so you'll know just how much that $5,500 debt actually cost you in the long run. Then you can use that information when tempted to make future purchases on credit. "How much will this cost me if I put it on a credit card now?"

Kill instant gratification, promote delayed gratification, pay cash for big ticket items and you can get a bargain or don't buy the item.

Answer 4

As a previous answer said assuming a simple interest calculation you would need to pay $290.79 a month to be paid off in 2 years. However, if the company uses a different calculation(such as 2 cycle billing) the amount you need to pay will be different.

Now, the next question is how much can you afford to pay. If you can afford something like $500 a month you can have it paid off 13 months.

Answer 5

First I have to ask is "how much is your monthly payment now?" Is this a minimum payment? What you need to do is pay your debts down in a bi-weekly basis. Take the payment divide it into 2 payments. When mailing the 2nd payment mark it "principle". This informs the creditor where you want to direct the payment to. To send additional funds divide the finance charges into 2 payments and then add it to your reduced payments. Use a calendar when doing this so you won't miss a payment. In less than 2 years the debt will be eliminated.

Answer 6

24% interest is way too high. If you have decent credit, you should be able to get a credit card with 0% interest for 12 months. With the new card, you only need to make $458.34 a month to pay it off in 1 year.

Answer 7

If you run it through an amortization program, using a 365 day year, fixed rate, simple interest it comes out to $290.79 per month. You would pay $1,482.35 in interest.

Not knowing the particulars of your loan, please don't rely on this as an accurate representation.