Credit Card Payoff Calculator

Note: This spreadsheet and the information on this page is for hypothetical and illustrative purposes only, and is not meant to be taken as investment or financial advice. Your individual situation is unique, and we do not guarantee the results or the applicability to your situation. You should seek the advice of qualified professionals regarding financial decisions.

Are you trying to escape from the oppression of credit card debt? The following steps may not apply to your specific financial situation, but you may want to consider them ...

1. Lower It! Call your credit card company(ies) and ask them to lower your interest rates. If you are considering debt consolidation as a way to lower your interest rates and zero-out your credit card balances, here is my take on debt consolidation.
   
   
2. Shred It! Stop using your credit card(s). Shred them if you need to. But if you plan to use them again some day, don't cancel them, because that can hurt your credit rating. You can always request a replacement card later.
   
   
3. Budget It! Evaluate your home budget and cash flow to figure out what monthly payment you can afford. You may need to consider cutting back on spending or working some overtime. Just remember that the faster you can pay off the cards, the less interest you pay in the long run.
   
   
4. Calculate It! Use the credit card payoff calculator to estimate how long it will take to pay off a card at its present interest rate.
   
   
5. Pay It! Make your payments religiously, until the balance is zero.
   
   
6. Sustain It! Just like the tendancy to gain weight right after a diet, you may be tempted to rack up a balance on your credit card again. Don't Do It!!! Learn from the past.
   
   
   

Below is a list of online calculators used to check the spreadsheet, and a couple calculators that let you do a bit more fancy calculations.

What will it take to pay off my credit card? : at Bankrate.com. A simple credit card payoff calculator similar to the spreadsheet above.

Simple Payoff Calculator : at ditech.com : Another simple calculator like the one above.

Credit Card Payoff : at dinkytown.net. This calculator lets you also include one or two future purchases, average monthly charges, and an annual fee.

Debt Management Calculator : at www.YoungMoney.com - Creates a credit card payment schedule and allows you to enter multiple card.