Credit Card Calculator
Interest rates on Credit Cards (usually around 15% -20% per year) are neither the cheapest nor most expensive finance options but if you take a long time to pay off a credit card your interest bill really adds up. And paying just the ‘monthly minimum’ payments will also cost you the most.
Before you use your credit card to pay, you can work out how long it will take, or how hard it will be to pay off, by using this Credit Card Calculator on the ASIC MoneySmart website.
The calculator shows you:
- The total cost and time to pay off your credit card paying the ‘minimum monthly amount’
- The potential savings by making higher repayments of various amounts.
There are even some great tips to action too such as:
- How to budget for your repayments
- The benefit of setting up a Direct Debit
- How to handle multiple credit cards.