Calculating Credit Card Interest

Written by David Mulonas


Continued from page 1

76,500 x 30 = $2,295,000 -

2,295,000 / 30 = $76,500 (Average daily balance)

5.75% / 365 = 0.1575 (Daily periodic rate)

.01575 x 30 x $76,500 = $361.46

$361.46 isrepparttar financing added torepparttar 138906 current balance: $76,500 + $361.46 = $76,861.46

It is difficult to determinerepparttar 138907 exact amount ofrepparttar 138908 payment when many purchases are made throughrepparttar 138909 month. Still you can get inrepparttar 138910 ball park.

The importance of paying down credit card balances Knowing how credit card interest is calculated can make a big difference on how you pay it off. Rather than paying your credit card bill once a month, pay as early and often as you can every month. This way you'll reducerepparttar 138911 average daily balance and thusrepparttar 138912 amount interest charged. If you are paying off larger amounts of debt,repparttar 138913 difference can be huge as makingrepparttar 138914 minimum payment will assure you years of billing cycles. So pay extra and pay often: For a credit card balance of $8,000 with 10% interest payment and with a $100 minimum payment, it would take a little over 43 years to pay it off. Not to mentionrepparttar 138915 interest paid would be around $13,300. So you borrow $8,000 you pay $21,300.

Note, that many home equity loans and equity lines of credit determine interest in a similar fashion. So pay those cards off!

For more information visit http://www.flipping70.com

David has been a personal finance specialist for the last five years. He most recent personal finance book, I'm Not Flipping Burgers When I'm 70 was published in March. His mission is to educate people to informative decisions on their own. He also has experience in the mortgage industry as a loan officer and works as technical consultant creating e-commerce collaboration tools.


Guide to Personal Loans

Written by John Mussi


Continued from page 1

If you are looking to borrow money over a period of less than ten years, whether you needrepparttar money for a purchase or perhaps to repay existing debt, then a personal loan may be suitable for your needs.

Personal loans are just another form of credit. If you are considering a personal loan to run alongside other forms of personal credit such as overdrafts and credit cards, you must give careful consideration to whether you will be able to affordrepparttar 138905 total of your regular payments. When consideringrepparttar 138906 situation it is wise to take into account your ability to pay were you unable to work due to illness or should you lose your employment.

Frequentlyrepparttar 138907 lending institution will ask for details ofrepparttar 138908 reason you requirerepparttar 138909 loan. Althoughrepparttar 138910 purpose ofrepparttar 138911 loan may have little impact on their decision to grantrepparttar 138912 money, it can have some influence onrepparttar 138913 maximum term ofrepparttar 138914 loan.

It is more likely that larger sized loans, for purchases such as cars, home improvements etc. will result in a longer repayment term. It is not uncommon forrepparttar 138915 purchase of a car to established with a repayment term of 3 years whilstrepparttar 138916 term for home improvement loans can be for much longer terms, sometimes as long as ten years.

Making repayments under personal loans isrepparttar 138917 same as servicing any debt you may have. If you find that you have difficulty in making your repayments, seek advice from your lender atrepparttar 138918 earliest opportunity. The earlier you tell them ofrepparttar 138919 difficultiesrepparttar 138920 more sympathetic they are likely to be. They may, for instance, accept a reduced repayment until your circumstances improve.

You may freely reprint this article providedrepparttar 138921 author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.


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