What will my minimum credit card payment be if i pay a healthy payment?

credit card payment
Eileen asked:


i have a credit card with a current high APR 22%; if i owe $5,000 and put down $2500, what will my new minimum monthly payment be? (btw….i usually always put down $100 more than the minimum anyways) Thank you for any help :)

http://1mortgagecalculator.info

4 Responses to What will my minimum credit card payment be if i pay a healthy payment?

  1. Lauren F
    September 14, 2009 at 11:58 am

    It could be as low as $85 a month, but more likely about $130 a month. However, that APR is huge. I recommend you transfer it to the Pentagon Federal Credit Union Visa. They offer balance transfers at 2.99% for the life of the transfer. At that rate, your payment would only be about $100, even if you didn’t make the $2,500 upfront payment.

    However, if you choose not to transfer it, at least put the hefty downpayment on your existing balance. That $2,500 you haven’t paid down is costing you $45 – $50 a month in pure interest, money you are throwing away to give profits to the bank.

    At a minimum, stop using this card for anything so it doesn’t get any worse. Cash only from now on.

  2. Ginger
    September 17, 2009 at 2:13 am

    Your statement will tell you what your minimum payment percentage is. Typically 2%, many banks have risen it to 4% or more.

    So if your balance is $2500 at 2% minimum, your payment will be $50.

    If the rate just jumped you may have 30 days to pay at the old rate if the account is closed.

  3. Maxwell
    September 20, 2009 at 3:42 am

    Figure out what percentage your credit card company uses to calculate the minimum payment – maybe 2% of your balance and then use one of the online calculators to figure out how much it’ll be, how much you could save by putting down extra (as you mentioned), etc.

  4. bdancer222
    September 21, 2009 at 1:42 am

    Your minimum payment is a percentage of the balance. With such a high interest rate, it’s probably 3% to 5% — some accounts are increasing the minimum to the 5% level.

    You need to work on paying off that balance as quickly as possible. Then only charge what you can afford to pay in full each month. Save all that interest.

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