# Credit Card Calculator: Fixed V's Minimum Payment

This credit card calculator calculates how many monthly payments are required to clear a credit card balance if paying a regular fixed amount or the minimum amount. The Credit Card Calculator illustrates how much money you can save my using a fixed monthly budget to repay your credit card early.

## Credit Card Payments

Credit Card payments are typically setup to deduct the minimum monthly repayment, this will normally be calculated as a percentage of the outstanding balance. The below example is for credit card with an outstanding balance of 1150 with a minimum repayment of 3% or 5 (whichever is higher).

**Minimum Payment Example:** 1150 x 3% = 34.5 or 5 if higher

Repaying the minimum amount is not the best practice and can mean that you spend years repaying your debt and pay far more interest. A more effective way to budget for a credit card and repay it quickly with less interest paid is to use the fixed repayment method.

### Fixed V's Minimum Payments

The beauty of using a fixed payment approach is that you can plan for the monthly expenditure as part of your household budget. You will know exactly how mush is due to leave your bank account and when.

In comparison, repaying the minimum amount will mean that you typically pay slightly less each month (NOT ALWAYS!!!< if the PAR percentage is high, repaying the minimum could actually cause your debt to increase!

The true comparison comes in how you pay off the loan, yes, a credit card is a loan. Minimum payments will only reduce the total of your credit card loan by a very small amount, especially when the minimum repayment amount is 1% or less. Most of your monthly repayment is actually spent on interest rather than repaying the debt. at 1.5%, your monthly minimum payment is split roughly 50/50 on interest repayment and reducing the Principal (the amount owed). Above 1.5% and you are repaying more off the Principal than you are on Interest charges.

### Credit Card Budgeting

Okay, we understand the financial challenge that most people have. Living with debt is not easy, climbing our of the debt hole can seem impossible but you can do it. The key to your financial future is practical planning. You need to set a budget ad stick to it, you will be amazed at how quickly your debt becomes manageable and the prospect of 'Debt Free' becomes a reality. In our illustration above, we mentioned the 1.5% and above golden figure. Most reputable credit card providers use a minimum of 3%, we suggest you budget for 5% if possible. Lets look at another example using the same figures as above.

**Fixed Payment Example:** 1150 x 5% = 57.5

57.5 may seem like a large amount but, if you budget for this then you will repay your credit card several years faster than using the minimum repayment approach. If 5% seems too high, try 4%. Whatever you do, the key message is keep those payments fixed.

### Credit Card Calculator

- A credit card balance of 1150 has been used in this credit card calculation
- An annual Interest rate of 16.5% has been used in this credit card calculation
- We have assumed that you make twelve credit card payments a year, one per month. You can edit this to increase or decrease the number of credit card payments paid.
- A fixed monthly repayment of 57.5 has been used in this credit card calculation
- The credit card monthly minimum payments have been set as the higher of either 3% of the outstanding balance or a minimum payment of 5

You can review the results of the credit card calculation by:

- Using the drop down menu to view either the Minimum Payment schedule or the Fixed Payment Schedule
- Clicking through the pages of the credit card schedule.

## Popular Finance Calculators

People who read '£1,150.00 Credit Card Calculator: Fixed V's Minimum Payment' also viewed the following finance guides and finance calculators:

### Finance and Tax Calculators

- Debt Payoff Calculator
- Credit Card Calculator: Fixed V's Minimum Payment
- Credit Card Repayment Calculator
- Payday Loan Calculator
- Loan Calculator
- Early Repayment Loan Calculator
- Car Loan Calculator
- PCP Car Loan Calculator
- Logbook Loan Calculator
- Personal Loan Calculator

- How much can I borrow?
- Mortgage Calculator
- Early Repayment Calculator
- Mortgage Comparison Calculator
- Mortgage Discount Points Calculator
- Stamp Duty Tax Calculator
- Rental Property Calculator
*Balloon*Mortgage Calculator*Buy to Let*Mortgage Calculator*Buy to Let*Mortgage Investment Profit Calculator

- Household Electrical Consumption Calculator
- Savings and Debt Comparison Calculator
- Household Budget Calculator
- Present Value Calculator
- Future Value Calculator
- Payments / Repayments Calculator

- Rule of 72 Calculator
- Savings Calculator (Goal Amount)
- US Treasury Bill Calculator [ T-Bill Calculator ]
- Invoice Calculator
- CAGR Calculator
- Perpetuity Calculator
- Effective Annual Rate Calculator
- Margin Calculator
- Current Ratio Calculator

- Dividends Calculator 2018/19
- Corporation Tax Calculator 2018/19
- Capital Gains Tax Calculator 2018/19
- UK Salary Calculators (PAYE Calculators)
- Landlord Income Tax (UK Only)
- US Salary Calculators (Federal Tax Calculators)
- AU Salary Calculators (Income Tax Calculators)
- JM Salary Calculators (Income Tax Calculators)
- CA Salary Calculators (Federal & Province)
- UK Employer NIC Calculator 2018 / 2019 tax year

- IR35 Status Calculator: In or Out?
- IR35 Calculators
- PAYE Calculator: Outside IR35, VAT Registered
- PAYE Calculator: Outside IR35, Non VAT Registered
- PAYE Calculator: Inside IR35, VAT Registered
- PAYE Calculator: Inside IR35, Non VAT Registered
- Employer NICS Calculator
- VAT Calculator
- Contractor Business Loan Calculator
- Profit Calculator

- Small Business Rate Relief Calculator
- VAT Calculator
- Stamp Duty Tax Calculator
- UK Salary Calculator
- United States Salary Calculator
- Canada Salary Calculator
- India Salary Calculator
- Australia Salary Calculator
- Jamaica Salary Calculator
- Singapore Salary Calculator

- Exchange Rate Calculator
- Forex Margin Calculator
- Retirement Calculator - Traditional IRA calculator
- Retirement Calculator - ROTH IRA calculator
- Retirement Comparison Calculator - ROTH and IRA
- Depreciation Comparison Calculator
- Annuity Depreciation Calculator
- Straight Line Depreciation Calculator
- Percentage (Declining Balance) Depreciation Calculator