Pay off 0% credit card.

WolfUK

Hello

This might seem simple but I can’t seem to find a Calculator that will work this out for me. I have a £12,000 0% credit card until the middle of 2021.

There is a minimum payment of xxx And I’m trying to work out how much I would have left to pay per month to ensure my credit card is paid off before the end of the interest free period.

Does a calculator like this exist As the ones I have found all seem to want you to put in a interest rate and will not accept zero as an amount.

Thanks

scott_lithgows

Divide 12k by months remaining.
If its 24,then its 500pounds per month to clear it

[Deleted User]

Find out what the minimum payment is - eg 1% or 2.5% of balance.

You can then calculate it from that. Each month, the minimum payment will drop.

WolfUK

scott_lithgows wrote: »

Divide 12k by months remaining.
If its 24,then its 500pounds per month to clear it

Yes that’s assuming I’m not paying a standing minimum amount

WolfUK

Deleted_User wrote: »

Find out what the minimum payment is - eg 1% or 2.5% of balance.

You can then calculate it from that. Each month, the minimum payment will drop.

Ok I will have to ask them as this is not on my statement

[Deleted User]

It's also in your terms and conditions if you can't find it on your statement.

macman

I’d be amazed if it’s not on your statement.

Terry_Towelling

WolfUK wrote: »

Ok I will have to ask them as this is not on my statement

You can find this online. You can also create a very simple Excel file to work it all out for you.

If we assume you have £12K of debt and 24 months left to run and ignore all the minute details, you would have approx. £9400 left to pay if you paid 1% of the outstanding balance each month, and about £6500 left if you paid at 2.5% each month.

Thing is, though, the minimum payment doesn't decrease very much each month, so you won't really notice that it is decreasing for a while. If you can keep hold of this mind-set, you would be better off keeping your monthly payment to a fixed amount roughly equivalent to the first month's minimum payment.

So, if your minimum payment is, say, 2.5% of outstanding balance (£300 in month 1) try to make all your payments for that amount. Doing that, you'd only have £4800 left to pay at the end of the term. The lower the residual amount, the better your chance of getting another BT card at 0% to take the full remaining balance - or the less the interest will be if you have to start paying it.

If you really can't afford to do that for the full term, at least try to do it as often as you can. There are other tricks to paying that are akin to 'stoozing' but the benefit to you would be so small as to not be worth it.


Edit. Sorry, misread OP as 'how much would I have left to pay at the end of the term?'

18cc

as scott says, in the example given you need to pay 500 a month.

if you already pay something as a minimum payment that doesnt change things you still have to.pay 500 IN TOTAL each month

SnowTiger

WolfUK wrote: »

Hello

This might seem simple but I can’t seem to find a Calculator that will work this out for me. I have a £12,000 0% credit card until the middle of 2021.

There is a minimum payment of xxx And I’m trying to work out how much I would have left to pay per month to ensure my credit card is paid off before the end of the interest free period.

Does a calculator like this exist As the ones I have found all seem to want you to put in a interest rate and will not accept zero as an amount.

scott_lithgows wrote: »

Divide 12k by months remaining.
If its 24,then its 500pounds per month to clear it

WolfUK wrote: »

Yes that’s assuming I’m not paying a standing minimum amount

Okay.

~£500 a month minus whatever the standing minimum amount is.

Standing minimum amount plus whatever extra your pay a month should total about £500.

molerat

WolfUK wrote: »

Ok I will have to ask them as this is not on my statement

I have 6 different credit cards and all of the statements show how the minimum is calculated.