0
If one had a credit card balance of 400.222 at 21.99 interest and paid only the minimum payment how much of the payment would actually go to the principal balance and how long would it take to pay it?
Wiki User
∙ 16y ago
Your current payment is $16.00. If you continue to make the minimum payments it will take you 4 years and 8 months to payoff this debt. The total interest paid will be $214.24
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Why is it unwise to pay minimum credit on your credit card?
Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.
When you pay more than the minimum payment on a credit card how do you know it's going to the principal balance?
It is actually quite simple. Any amount that you pay that exceeds the finance charges and any fees included within that minimum payment goes toward the principal. In addition, 100% of the overpayment goes toward the principal balance. In other words, if you make just the minimum payment, a few bucks might go toward the principal balance. If you pay $20 above the minimum payment, all of that $20 plus a few bucks from the minimum payment go toward the principal balance. All of the overpayment goes toward principal. You can also look at the minimum payment calculation to determine how much of the minimum payment goes toward principal.
Do most high interest saving accounts require a minimum balance?
Yes, most high interest savings accounts require a minimum balance. Since it is high interest, it is usually a high minimum account balance as well.
What happens if you pay more than the minimum balance on your credit card each month?
When you pay more than the minimum balance on your credit card each month, you reduce the principal balance. This does not change your interest rate, but over time there will be less interest total on the total decreasing balance. However, to make this work even better, you could also add in what equals one interest payment on top of the "extra" payment, so even more goes to the principal each time not applied to the interest. When you pay off a credit card more quickly, it will positively affect your credit rating.** Even adding $5 to $10 above the minimum+interest can begin to make a dent in your amount owed. But you must pay on time to get any benefit at all from doing these larger or "extra" payments.
What are the benefits of CitiGold Interest Checking?
One of the benefits of CitiGold Interest Checking is that there is no minimum opening balance required. There is also no minimum fee to maintain to avoid a finance charge. One will also draw a .1% interest on the balance of their account.
Why is it unwise to pay minimum credit on your credit card?
Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.
When you pay more than the minimum payment on a credit card how do you know it's going to the principal balance?
It is actually quite simple. Any amount that you pay that exceeds the finance charges and any fees included within that minimum payment goes toward the principal. In addition, 100% of the overpayment goes toward the principal balance. In other words, if you make just the minimum payment, a few bucks might go toward the principal balance. If you pay $20 above the minimum payment, all of that $20 plus a few bucks from the minimum payment go toward the principal balance. All of the overpayment goes toward principal. You can also look at the minimum payment calculation to determine how much of the minimum payment goes toward principal.
Do most high interest saving accounts require a minimum balance?
Yes, most high interest savings accounts require a minimum balance. Since it is high interest, it is usually a high minimum account balance as well.
What happens if you pay more than the minimum balance on your credit card each month?
When you pay more than the minimum balance on your credit card each month, you reduce the principal balance. This does not change your interest rate, but over time there will be less interest total on the total decreasing balance. However, to make this work even better, you could also add in what equals one interest payment on top of the "extra" payment, so even more goes to the principal each time not applied to the interest. When you pay off a credit card more quickly, it will positively affect your credit rating.** Even adding $5 to $10 above the minimum+interest can begin to make a dent in your amount owed. But you must pay on time to get any benefit at all from doing these larger or "extra" payments.
What are the benefits of CitiGold Interest Checking?
One of the benefits of CitiGold Interest Checking is that there is no minimum opening balance required. There is also no minimum fee to maintain to avoid a finance charge. One will also draw a .1% interest on the balance of their account.
At a bank to receive interest is a minimum balance required?
If an account is interest based then any amount is fine
What is a type of checking account that also earns interest these accounts generally have a minimum balance?
A type of checking account that also earns interest is called an interest-bearing checking account. These accounts typically require a minimum balance to be maintained in order to earn interest.
Whats the difference between an orange account and a regular savings account?
An orange account earns high interest, there are no fees attached and you do not need a minimum balance in your account. Most regular savings accounts have a minimum balance and really low interest rates.
How do you calculate saving interest?
The savings interest is calculated as simple interest. (P*n*r)/100 where P is the principal, n is the number of years and r is the rate of interest. The principal considered for this is the minimum balance maintained in the account between the 10th and 30th of that calendar month. Let us say on the 4th you had Rs. 5000 and on 10th you had Rs. 7000, on 18th Rs. 6500 and on 27th Rs. 5000, the amount considered for interest for that month is Rs. 5000/- Interest for that month = 5000 * (1/12) * 3.5 / 100 = Rs. 14.58/-
If you pay the minimum monthly payment will you owe interest?
Yup, you will owe a lot of interest, because a monthly minimum payment just keeps the card current and upto date. Whatever is your APR divide that by 12 is your monthly interest on the balance at that time.
Do You will have to pay interest on credit card debt as long as you pay the minimum amount due on time each month.?
Yes, you pay interest on credit card debt if you only pay the minimum payment. If you pay the entire balance, then you pay no further interest.
How do you calculate interest in saving account Ethiopia?
the minimum balance witin the month times times pevailing interest rate multiplied by month and divide by 12
