If you are one of those persons who constantly
makes the minimum payments on your credit card bills,
then this calculator is for you! The purpose of
this calculator is to demonstrate how much interest
you will pay and how long you will be paying off
that credit card, and this assumes that you never
charge any more on it. For our purposes, we stop
the calculations at 1200 payments (100 years), since
we don't expect the bill to be a big concern of
yours at that time.
To use this calculator you need to know what your
minimum payment is on your credit card. Somewhere
in your original disclosure statement, it will state
something like "your minimum payment will be
2% of the balance or $10, whichever is higher."
These are the two figures that you will enter in
Rows 3 and 4, respectively.