Minimum Payments: What a Debt Payment Calculator Proves – Half A Payment

Debt Payment Calculator

The Minimum Payment Trap

 One of the main concerns expressed during the recent congressional hearings on credit card debt was the trap created for those who only make minimum payments on their balances. While these are supposedly a convenience for the consumer, the debt payment calculator at our website shows just how costly this aspect of credit cards really is.

According to an analysis by Investopedia, if you charge $3,000 to pay for your child’s birth on a typical card and only make minimum payments, you will still be paying on that debt when your child is a senior in college. That is more than 255 payments on the same debt. Although new rules govern the issue of monthly payments, they are still a major financial money pit.

While much of your other debt, such as mortgages and car loans, have fixed monthly payments, there are still basic financial principles working against you. As a credit card payoff calculator or our easy-to-use early loan payoff calculator (Debt Payment Calculator) quickly shows, you pay a lender interest every month on the principal balance outstanding. That means the bulk of your payment often goes to paying interest, with only a small amount of the payment reducing the amount you owe.

Once you understand the importance of reducing your outstanding balance, the concepts behind the debt payment calculator at the Half A Payment™ website make a lot of sense. You just plug in two or three pieces of information about your loans into our early loan payoff calculator. You are then able to immediately get a personalized analysis of how much money you can save with our approach to paying your bills.

There are two elements of debt reduction that we call the Two Secrets to Debt Elimination. The first step we recommend is splitting your monthly payment into two halves and paying them twice a month. While the amount is the same, you are reducing the principal faster, and the lender has to charge you less interest on a lower balance owed. Our credit card payoff calculator shows how this alone can shave years off of that 20 year minimum, once-a-month payment trap.

Half A Payment™

However, the debt payment calculator at the Half A Payment™ website quickly shows you the added power of also using our second method. If you simply increase your payment by a small amount each time you make one, the results shown by the early loan payoff calculator will stun you. It is possible to save thousands of dollars in interest and eliminate months or years of payments with our approach to debt elimination.

If you’ve spent too many years trying to get out of that monthly payment trap, check out our debt payment calculator today to start your journey to eliminating that debt.

Click on Half A Payment™ To get more information on  our  services

November 14, 2013
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