Real cost of paying minimum - credit card calculator
Assumptions
1.
This calculator assumes there is no initial interest free period.
2.
This calculator only uses the original debt amount specified and does not allow for further purchases to be made.
3.
This calculator assumes there are no annual cardholder (or other) fees except for interest as specified.
4.
Inflation is not factored into the calculations.
5.
A default Interest rate of 17.25% is used. This is the average interest rate of all credit cards within Australia as shown on the Canstar Cannex website effective 24/06/2011.
6.
A default percentage rate of 2.0% is used to calculate the minimum payment. This rate is taken from ASIC's MoneySmart website effective 28/06/2011.
7.
The maximum number of years to pay off a credit card is 90 years.
8.
Interest is applied monthly (at one twelfth of the annual interest rate) to the opening monthly balance outstanding and any repayments are made at the end of the month.
9.
Repayments are calculated and deducted from the debt until a zero balance is attained.
If your personal situation differs from the assumptions made, then the calculations may differ from your actual amounts.
Disclaimer
This website does not offer specific advice. Super SA is not licensed to provide you with personal advice and if after using this calculator you wish to make specific decisions we would strongly recommend that you seek the advice of a financial planning professional.