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How long does it take to pay off your credit card debt if you pay only the Minimum Amount Due?

6mos?1yr? Share your thoughts & wisdom PExer
And also the explanation so we will know ;-)
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Answers

  • SoulExchangeSoulExchange 青春フールパワー PEx Expert 🎖️
    Depende sa outstanding balance mo, sa minimum amt due ng bank, at sa finance charge ng bank.
    If 1K lang outstanding balance mo, ang minimum amount due ng bank is 500 or 5% whichever is higher, at FC ng bank is 3.5% per month, then 3 months.
    If 10K outstanding balance and same min amt due, almost 36 months.
    Of course according to excel to at assuming na you will not use your card anymore from the time that you will pay only the minimum amount.

    Formula ko via excel is this:
    Cell A1: your starting outstanding balance
    Cell B1: =IF(A1*0.05>=500,A1*0.05,500)
    Cell A2: =(A1*1.035)-B1

    Rationale: 1K balance mo, magbabayad ka on or before your due date. Ang minimum amount mo is 500. So 500 na lang balance mo.
    Next statement + 3.5% yung minimum amount due mo so 500*1.035 = 517.50. You will pay 500.
    Next statement + 3.5% yung minimum amount due mo so 17.50*1.035 = 18.1125.
    Then the cycle goes on.

    Oh my god why am I doing this? Hahahahahahahahaha :lol:
  • IronHandofJusticeIronHandofJustice Member PEx Guru 🎖️🎖️
    harrows88 said:
    6mos?1yr? Share your thoughts & wisdom PExer
    And also the explanation so we will know ;-)
    You just need to review your statement. May mga sample computation sila duon. Magiiba kasi iyan based sa oustanding, minimum due computation, card spending, finance charges, etc.


  • harrows88harrows88 PEx Rookie ⭐
    Depende sa outstanding balance mo, sa minimum amt due ng bank, at sa finance charge ng bank.
    If 1K lang outstanding balance mo, ang minimum amount due ng bank is 500 or 5% whichever is higher, at FC ng bank is 3.5% per month, then 3 months.
    If 10K outstanding balance and same min amt due, almost 36 months.
    Of course according to excel to at assuming na you will not use your card anymore from the time that you will pay only the minimum amount.

    Formula ko via excel is this:
    Cell A1: your starting outstanding balance
    Cell B1: =IF(A1*0.05>=500,A1*0.05,500)
    Cell A2: =(A1*1.035)-B1

    Rationale: 1K balance mo, magbabayad ka on or before your due date. Ang minimum amount mo is 500. So 500 na lang balance mo.
    Next statement + 3.5% yung minimum amount due mo so 500*1.035 = 517.50. You will pay 500.
    Next statement + 3.5% yung minimum amount due mo so 17.50*1.035 = 18.1125.
    Then the cycle goes on.

    Oh my god why am I doing this? Hahahahahahahahaha :lol:
    nice one, sir!
  • harrows88harrows88 PEx Rookie ⭐
    harrows88 said:
    6mos?1yr? Share your thoughts & wisdom PExer
    And also the explanation so we will know ;-)
    You just need to review your statement. May mga sample computation sila duon. Magiiba kasi iyan based sa oustanding, minimum due computation, card spending, finance charges, etc.


    salamat, sir
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