Resolved Question
Credit card...minimum payment...please help!!!?
I don't know how to calculate that.I'm not very good at maths.can you help?and explain as if you were talking like a 8 year old kid? subtract or divide this and that or multiply...in that terms so I understand.
will it lower considerably if I pay £500?
please help
minimum payment £141
estimated interest £118
credit card's total amount £6800
Additional Details
when I said I'm thinking amount paying £500...it's just for this month.I can't afford to pay £500 next month...would that make a lot of difference to the minimum payment?
2 weeks ago
Best Answer - Chosen by Asker
With about £120 of all payments going towards interest, the only way you are going to significantly lower your balance and payments is to stop using the card and to pay significantly more than the minimum payment each month - say at least £300
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Other Answers (4)
- It wouldn't really reduce the minimum payment by a significant amount.
Not sure on the requirements for you minimum payment (usually it's 5% or something), but in the figures you've provided £141 is a little over 2% of the balance (£141/£6800*100=2.07%).
If you use this as the basis for calculating the following months minumum payment it would be as follows:
Current Balance - £6800
Less paid this month £500
Plus interest - £118
total next month: £6418
2.07% of 6418 would be £132.85, so your minimum payment will only have been reduced by a small amount.
hope that helps. - It depends what your interest rate is.
It sounds like your interest rate is quite high, I think around 1.75% but without knowing your credit card terms it's hard to judge, however £141 is approx 2.07% of £6800.
If you pay off £500 this month, the interest will be calculated on £6300 so next month the total amount outstanding would be £6410 approx. The minimum payment would probably be in the region of £133 (2.07% of £6410).
The quick answer is the faster you can pay it off, the less it will cost you. - the lower the balance the lower the minimum payment will be, if u pay off £500 then yr balance would be £6300 plus next months interest. so yr minimum payment would be a bit less next month. just paying the minimum means u will be paying it forever however if u have a crisis at the moment then a few months at min payment wont do much harm.
- If you pay 500 this month then the minimum payment should lower a bit if you don't buy anything else on this credit card. The 118 should be the interest that will be charged if you don't pay in a year.