Finding Help With Getting Out of Debt

By: Kjell Anderton
Do you need help with budgeting your money? Do you feel overwhelmed by your credit card debt? If so, you are not alone. Many Brits are feeling a bit lost when it comes to balancing their own personal budgets, mostly because they lack the tools to help them properly plan and prepare a budget.

In order to more effectively create a budget, it is beneficial to use special credit card calculators. With the help of these calculators, you can determine how long it will take you to pay off your debt if you send a certain payment each month. Or, you can find out how much you need to pay each month in order to get your debt paid off by a certain time. With the help of these calculators, you can better budget your monthly expenses while also working toward realistic goals.

How Long Will it Take?

The first type of calculator will help you determine how long it will take for you to pay off your credit card debt. Many Brits are surprised to learn that paying only the minimum payment amount on a small debt can mean carrying the balance for many years. If you have a 750 credit card balance with an 11.99% APR, for example, it will take you five years and ten months to pay it off if you send 15 per month. If you send 30, on the other hand, you will reduce the pay off timeframe to just two years and five months.

In addition to saving yourself time, increasing your payment will also help you save money. If you send 15 to your credit card company for five years and ten months, you don't need a special calculator to tell you that you will be sending a total of 1,050 to the credit card. This means you are spending 300 in finance charges. By sending 30 per month for two years and five months, on the other hand, you spend 870. This means you save 180 by simply sending in 15 more dollars each month.

How Much Should I Pay?

If you have a little more financial leeway and if you want to have your debt paid off by a certain time, you might want to use a different credit card calculator. With this calculator, you can determine how much you have to pay each month in order to get your debt paid off by a certain time.

If you are carrying a 750 balance on a card with an 11.99% interest rate and you want to get it paid off in eight months, for example, you could input this information into the calculator to see how much you have to send each month. In this case, your monthly payment would need to be 98.01. Armed with this information, you can easily turn to your budget and determine if you have enough funds to meet your goal. If not, you can set a new goal and create one that is feasible for you.



About The Author:
This article was written by Kjell Anderton, the creator of the UK Financial Options website where you can compare all the major credit cards currently on offer in teh UK and choose the deal that best suits you. UK Financial Options offer a free credit card calculator.