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I couldn't find any other place to post this and I looked through the thread but I can't find an answer. Why do online credit-card payoff calculators give me a different answer than my credit card statement? For example, I have a $356.23 balance on a credit card statement with 25.24% APR. The minimum payment is $16. The statement tells me if I make only the minimum payment I will pay off the balance in "about 5 years" (60 months) as is now required by the CARD act. However, every online calculator I have tried tells me it will be about 2 years (31-32 months) to pay it off. This card has no annual fees or any additional fees (I've had the account for about 8 years and have never had anything added to the balance besides purchases/interest). The 25.24% APR is the only APR on that card (there are no other rates being charged based on type of charges). What calculations do they do and what am I getting wrong? I will have this debt paid off in the next two months by the way, since I know paying the minimum is stupid especially on such a small balance. I'm just curious as to how payoff is calculated and where the inconsistency is coming from as right now 
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May 31, 2010 01:45
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| # ¿ May 5, 2024 22:41 |
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I posted this in Student Loan thread but no response. What do people mean when they say private student loans are structured like a credit card and not like a mortgage? Ive heard some law school grads pointing this out. The most I can come up with my google-fu is that it means interest accrues daily... how does this compare to a mortgage and how is it screwing student loan borrowers more than mortgage borrowers? (I know nothing of mortgages and indeed, shamefully little about debt structuring)
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Dec 16, 2010 09:26
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