Smash out your Credit Card Debt

Credit cards are great when used strategically but they can become a nightmare very quickly.

If you have one of those balances that just doesn't seem to be going down then use this handy calculator to help you create a strategy for getting the balance back to zero.

We recommend you do two calculations.

1. First a calculation based on your current balance, interest rate and minimum payment required. This helps you understand how long it will take to get your balance back to zero. 

2. Next increase the payment amount until you find a payment that would help you reach a zero balance by your preferred end date.

Handy Tip: Regardless of your interest rate if you start a monthly repayment that is based on 10% of your current balance and maintain that same payment amount each month your card will be fully repaid in 11 months. (Assumes no fees or continued use of the card occurs over this period)

Should I consolidate my credit card debt?

Often people think this is a solution to ending credit card debt. In reality very few people achieve what they intended to from consolidating.

If you are considering consolidation it is important to have a clear plan of how you will manage finances after they are consolidated to ensure you are building regular savings so that the need to go back to using short-term loans is avoided.

Our FREE Online Budget Planner can help you build a plan and we can also provide you some recommendations to help avoid going back into debt once you submit your budget for review.

Opening Balance Minimum Payment Interest Rate
Month Balance Interest Principal
1 $716.63 $16.63 $283.38
2 $428.54 $11.91 $288.09
3 $135.66 $7.12 $292.88
4 -$162.08 $2.26 $297.74