Once a credit card holder runs up a large balance on their credit card, paying back the credit card debt is not only a burden on the monthly budget but can lead to excessive amounts of additional costs.  Credit cards can be very expensive for those consumers who carry a balance and then make only the minimum credit card payment or a payment that is only slightly higher than that amount.  Making only the minimum payment on credit card balances has cost consumers tremendous sums of money in credit card interest charges year after year. 

To help consumers better understand the advantages of paying off the balance on their credit cards as quickly as possible, it can be very helpful to employ the use of a credit card calculator.  The credit card calculator can quickly analyze the impact of making the minimum credit card payment as well alternative payment amounts. 

These calculators are designed to show the credit card holder how many months it will take to pay the credit card balance and how much interest will be paid during that time.  Using the calculator can also show what it will take to pay off an existing credit card balance, and any changes to the payment amount that would be necessary to pay the account off in a certain amount of time.

Of course, if you pay off your credit card in full each month, the balance would be zero and there would be no need to use the credit card calculator.  If you do not pay the balance in full and you carry the credit card balance over from the prior month, this is when you need to understand the true cost of credit  and should use the calculator.

The credit card calculators determine the amount of months to pay off a credit card based on the input of the credit card interest rate the current credit card balance.  In the credit card statement, the credit card company will disclose the credit card interest rate and the current credit card balance as well as the minimum payment which will the data needed for input in the credit card calculator to obtain accurate results.

Depending on an individual’s budget and financial situation, the credit card calculator user can change the data entered to see how they can minimize their interest charges over time.

One of the true benefits of these credit card calculators is to show how borrowing for day to day expenses can get many people into financial trouble.  The purpose of the calculator is to get the right information to the credit card user so they can help gain control of their finances.

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