If you only pay the minimum due on your credit card you will remain indebted for decades.
The Australian government’s website MoneySmart.gov.au has a very handy calculator that shows you how long it will take you to pay off your credit card based on what percentage of the total debt you pay each month.
The really scary figure is how long it would take you to pay off your credit card if you just paid the monthly minimum required.
In South Africa the average interest rate on a credit card ranges from 20% to 25% and the minimum repayment required each month is between 3% and 5% of the capital.
If you owed R20 000 on your credit card, had an interest rate of 20% and only paid the minimum amount each month of 3%, it would take you nearly 25 years to pay off your credit card over which time you would have paid the bank R43 600.
The higher the interest rate the worse that figure becomes. If you have an interest rate of 25% it will take you nearly 34 years to pay off the card and you would pay R61 600 to the bank.
If you wanted to pay off your card in two years you would need to pay R1 046 per month. By the end of the two years you would have paid the bank R25 000 which is nearly R40 000 less.
Only paying the minimum amount on your credit card is just not a viable financial option.
how much would I pay back monthly if I made a large payment of R20000 for car repairs and what amount would it be monthly in order to avoid large interest ?. Also how many months is the maximum to pay back?
The best strategy is to use your Budget facility on your credit card and to select the period you wish to pay it off. This way the bank will automatically take the monthly installment to ensure it is paid off in time.
Morning I have R56000 on my credit card how much I will pay per month
you need to look at what the minimum amount due is on the credit card statement – however I strongly suggest you pay in substantially more than that if you want to get out of debt
Hi,I owe 2000 on my credit ,how much and how many payments shud I make to balance this or pay it off
Try pay as much as possible. It is hard to do an accurate calculation as it depends on the interest rates and fees that are charged each month.
As a rough idea, if you paid R370 a month you would pay off in about 8 months (this is assuming you have a R69 a month service fee on the credit card. Check for other fees like credit insurance)