Calculating credit card repayments to be debt free

debtfreeinfive

Hi All,

I've done some searches but can't find what I'm looking for so please excuse any duplicates.

I have a Barclaycard with a current balance of £5150. I'm trying to put a plan together to be debt free within 5 years. With that in mind, I've been online and used some calculators that say if I pay £136.16 each month for 5 years, it will pay it off. The APR is 19.9%.

My question is, are these calculators correct? Does it take into account interest etc? I'm not actually paying interest on £3.7k until June as they are 0% balance transfers but I'm looking to get a fixed number so I can look forward to being out of debt. One of them warned that it can't calculate % based minimum payments (and it could add years to repayments) which left me confused as I don't know if my card is or not.

I appreciate your time and thanks in advance.

grumbler

debtfreeinfive wrote: »

Hi All,

I've done some searches but can't find what I'm looking for so please excuse any duplicates.

I have a Barclaycard with a current balance of £5150. I'm trying to put a plan together to be debt free within 5 years. With that in mind, I've been online and used some calculators that say if I pay £136.16 each month for 5 years, it will pay it off. The APR is 19.9%.

My question is, are these calculators correct?

Yes.
MSE Tool: Loan Cost Calculator

Does it take into account interest etc?

Of course it does as without interest 5150/60=85

I'm not actually paying interest on £3.7k until June as they are 0% balance transfers but I'm looking to get a fixed number so I can look forward to being out of debt. One of them warned that it can't calculate % based minimum payments (and it could add years to repayments) which left me confused as I don't know if my card is or not.

Check the summary box of your card.
BC minimum payments are 2.5% or 1%+interest whichever is bigger.

In your case both are 2.5% and smaller than £136: APR converter

With 0% until June and £136 p.m. it will take a little less time than 60 months.

For a more accurate figure split the balance into two parts and use SnowBall calculator if you wish.