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Credit card debt has become an extremely serious financial malady that affects countless individuals. Minimum monthly payments do little more than pay for the interest when both balances and interest rates are high. Using a credit card debt calculator is one method that can help you to keep your credit card debt from getting out of control.

Why Credit Card Balance Transfers Are Problematic

Some consumers transfer their credit card debt to new credit cards that offer lower interest rates, thinking that will solve their credit card problems, only to find that making a payment one day late can raise their interest rate even higher than it was with their old credit card company. By using a credit card debt calculator, consumers can take a more informed approach to managing their credit card debt.

What Do Credit Card Debt Calculators Do?

Credit card debt calculators allow you to determine the amount of time it will take you to completely pay off a purchase you are thinking about charging to your credit card account, assuming you make just the minimum monthly payment each month.

For instance, if you are thinking about buying a flat screen TV with your credit card, a credit card debt calculator may show that it will take you 20 years to pay off the TV at the minimum monthly payment.

There are very few people using twenty year old televisions in their homes. In this instance, a credit card debt calculator can show you that, unless you are sure that you can make more than your minimum monthly payment, it does not make sense to purchase this television with your credit card.

With this information, you can use a credit card debt calculator to estimate the useful life of your purchases and adjust you monthly payments so that they align with the product's useful life. Using the flat screen TV example, a credit card debt calculator will tell you how much you need to pay each month on your credit card so you can pay it off before it breaks down or needs to be replaced.

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