Work out Credit card Payments to obtain an end date

[Derek]

Hi, Just wondering if antone had an Excel Credit card spreadsheet. I am
looking to calculate the length of time to pay off credit cards.
Regards
Derek

 

[Ron Coderre]

First, check your statements for the "rules".
Your minimum payment will include a miniscule percentage of outstanding
principal (typically around 1.5%) plus interest. The prin reduction percent
may be stratified based on balance.

You'll probably need something like this in these columns:
Beginning balance
Periodic Interest (Beg Bal X Rate/12)
Principal Reduction (Beg Bal X PrinReductPct)
Ending Balance (Beg Bal + Per Interest -Prin Reduction)

The Initial Beginning Balance is your current balance.
All other Beginning Balances are equal to the prior Ending balance.

Don't be too surprised if the term to payoff the balance, making only
minimum payments, is over 30 or 40 years.


***********
Regards,
Ron

XL2002, WinXP-Pro

 

[Ron Coderre]

Calculation adjustment:

This:
Ending Balance (Beg Bal + Per Interest - Prin Reduction)

Should be this:
Ending Balance (Beg Bal - Prin Reduction)

In my playing, I used a $5000 balance at 12% APR with 1.5% principal
reductions.
It pays off in around 46 years and racks up over $3000 of interest!


***********
Regards,
Ron

XL2002, WinXP-Pro