Use a repayment calculator and effectively strategize your payments on loans
As you know, these days, Credit cards have become one of the most popular modes of payment. Yes, you buy now and pay later, and naturally, this is a wonderful mode of payment. When it comes to repaying the amount due on credit cards, simply make minimum payments and with that you will not be penalized. However, Ben Woolsey, Marketing consumer research unit, CreditCards.com points out, if you continue to make only minimum payment on credit cards, then you will be paying very heavy interest on the outstanding balance. In order to avert such a situation you may make use of a credit card repayment calculator.
The darker side of making minimum payments:
In order to highlight the heavy interest you actually pay, Ben Woolsey gives an example. Presume that you have $16000 due on a credit card and start making minimum payment every month. According to Ben Woolsey, in such cases you will end up paying $11000 extra, which works about to about 68% more than what you actually owed. This could be called as the darker side of making minimum payments on your credit cards.
A unique tool to analyze your repayment schedule:
Now, before making payment you should understand how your payment is apportioned against the principal and interest. By doing so, it would be possible for you to reschedule your payments in such a way that bulk of the amount is reckoned against the principal.
The debt payoff calculator is an ideal tool which enables you to make such analysis. This unique calculator is so programmed, it helps you to make effective strategy in clearing the debts on the card.
Exclusively programmed calculators:
Now, you may wonder how to calculate debt repayment so that you do not end up paying a huge amount towards interest. As a matter of fact, the use of the credit card repayment calculator involves very simple steps. It does not require any training or experience. Just fill up the data required on the calculator and instantaneously the calculator will display the amount reckoned against the principal and interest. The entire process takes hardly few minutes.
Some of the unique features:
Some of the repayment calculators are exclusively programmed for calculating the monthly repayment schedules. This helps you to plan the repayments in such a way that you pay as less as possible on the interest. In such cases, the credit card repayment calculator will help to calculate the interest you will be paying on the card against the fixed amount you are planning to pay. This enables to effectively strategize your payment plan.
Apportion payments on varieties of loans:
There was a time when you would keep wondering how to repay debt on your credit card or on other types of loans like the car loan, house construction loan and so on. This is because there was no mechanism available for you to apportion the repayments between the interest and the principle. In the absence of this information, you would feel it very difficult to schedule your payments. But, now there are exclusively programmed debt calculators which can apportion the payments between the principal and interest on varieties of loans.
For more information, visit at https://www.debthelpline.com.au/calculators/