# Credit Card Loan Repayment Calculator

By Dave Nyam •  Updated: 03/23/24 •  5 min read

Credit cards are more than a mere payment tool; they act as gateways to financial flexibility. Tailored tactically, it can greatly help credit building, earning upon expenses, and providing facilities during purchase. On the downside, of course, this means there is an opportunity for a pile of debt. So, these details about the issue of the loan, the repayment term, and the calculators are to be well understood to have healthy finances. The article will touch on the deconstruction of the loan repayment calculators for loans taken on a credit card just to lead the crowd out of the labyrinth of dealing with their credit with confidence and clarity.

## Credit Card Loan Repayment Calculator

A credit card loan repayment calculator is an online, electronic gadget to simplify management issues attached to credit card indebtedness. It will help you understand how you will continue with your debt, considering the interest being offered, rate, and monthly payments so that the balance keeps stirring until it is repaid. That is, it is input with the value of your total credit card balance, the annual percentage rate (APR), and the amount you can pay for the loan each month. The loan repayment calculator will show a vivid amortization schedule for the inputs done.

This will entail the principal and the interest amount with each payment, showing how slowly the debtor progresses and paying down the debt over time. This calculator can be the best strategy to furnish the full picture of monetarily relevant duties and plan accordingly.

This can also provide options for those who do not wish to pay a great amount and who just want a lower monthly payment to stretch the length of the loan. Of course, if smaller monthly payments are desired, usually that means paying more interest over time. It’s very handy in coming up with a suitable strategy for paying back the amount borrowed within the frame to best suit your financial needs and situations.

## How to Calculate Credit Card Loan Payment?

An individual can calculate a payment on a credit card loan by the APR of the card and the total amount due. The calculation to get the amount of the monthly payment is:

P=1−(1+r)−nr×PV​

Where:

• ( P ) is the monthly payment
• ( r ) is the monthly interest rate (APR divided by 12)
• ( PV ) is the present value or total amount of the loan
• ( n ) is the total number of payments

For example, if one owes \$5,000 on a credit card at 20% APR and wants to work that balance off over two years, the rate per month ( r ) would equate to about 1.67%. Placing these values in the formula will give us the monthly amount that needs to be paid.

## How Can You Clear Your Credit Card Debt If You Have No Money?

Attending to this arrear when you have no cash involves a process that, when successful, will revolutionize your financial lifestyle. Below are a few itineraries of things you should do to get such a service.

• Prepare a budget: It is important since you will have analyzed your spending and have reserves to allocate towards debt repayment. You will only achieve this by reducing your non-essential expenses to free money for your debt payments.
• Increase Income. Work extra hours, take up a part-time job, freelance, or sell stuff within and around the home.
• Credit Counseling: There is a non-profit and free credit counseling service that helps consumers learn how to borrow money and provides knowledge on making wise choices related to debt management.
• Debt Reduction Options: Review all opportunities for debt reduction. This may well involve consolidating the settled loans, which will help reduce the total amount potentially owed or make much smaller monthly payments.
• Prioritize Payments: If there is a serious need to service more than one loan, the one with the highest interest should be the first to clear.
• Negotiation: Engage the parties involved in credit provision in talks that will assist in negotiating lower interest rates or manageable payback plans, as per your capability.
• Avoid New Debt: Stop using your charge plates and avoid taking on new loans, which will only exacerbate the problem.
• Emergency Fund: If you have resources, sinking capital to fall back on would be a great way to avoid getting loans should something rear its ugly head from the depths.

## What is the Minimum Due on a Credit Card?

The minimum payment due on a credit card in South Africa means the smallest sum of money that one has to pay off against his/her total credit card bill every month so that the account remains in good standing. It usually translates to a certain percentage of the whole balance, in addition to the total interest, since the last due date of the bill-up, which in most cases ranges from 3% to 5%.

This is much cheaper in the short run, in that one has to make only a minimum payment, but it can ultimately have a higher cost in interest as this rounds the remaining balance into future billing cycles. The average South African interest on an individual’s credit card payments is 20–25%; thus, it would be much more sensible to pay more than the minimum due to help reduce the principal balance promptly and lower the expense for interest.

You will be allowed a maximum interest-free period of 55 days, provided you pay the full amount owed by the due date. Simply, you will not be charged any interest on your purchases, given that for every purchase, you pay the whole amounts owed on the card before due date.