Credit card calculator showing minimum payment misery launched

June 13, 2006

By Peter Kenny

Too many UK credit card holders elect to make the minimum payment on their credit card balance each month and are falling into a credit card debt nightmare.

With minimum payment requirements set by banks and credit card companies at around 2 – 2.5 per cent of the credit card balance, many UK consumers find themselves paying more than twice they owe just in interest charges.

Minimum payment requirements should be set higher, however, until this happens more people have to realise just how much minimum payments cost.

Our new minimum payment calculator allows a user to enter their current balance, credit card APR and minimum payment. The calculator will show how much and how long it would take to pay off a credit card balance.

By simply paying an extra £10 each month a credit card holder could reduce the time taken to pay the balance to less than a third than before.

Remember it is in the banks and credit card companies interests to set minimum payment requirements low.

Click here to access our minimum payment calculator

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