Credit Card Math Problem

I have a credit card with $2329.55 on it at 9.99%. I've been paying 10% of the balance each month.

As the debt gets smaller, the 10% would continue to get smaller until I'd be forced to pay $10 for the monthly minimum most require. Is there a way to calculate amortization based on paying 10%/month, factoring in 9.99% APR? I'm wondering how long this process would actually take.

Preferably with an online calculator as I don't even own a calculator anymore. The usual debt calculators I use are based on paying a set amount each month rather than a percentage.

do you know how to use excel? could be done fast on a spreadsheet if you can't find a calculator online

British based, but you could try this:
http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

Bear in mind I'm not 100% sure what amortization is :)

The problem with this method is that your payment is going to shrink at the same rate as your balance, so while your debt will shrink and shrink, it will take a really long time to get the full balance down to the point you're talking about -- I mean years.

I don't know a calculator for this, because percent of debt rather than fixed amount is an unusual way to pay off a debt, but an easy way to calculate this is just to do 2399 x 0.9 on a calculator, and count how many times you have to do this before you get to $100 (the level at which 10% would be $10). This doesn't factor in the 9.99% APR, but the effect of that will be minimal.

Sorry I mean do $2399 x .09 and then the RESULT x .09

er 2329, rather

Don't you want to mpy by 0.9? 10% reduction means you're left with 90% of the starting value.

Also, multiplying by 0.9083 should factor in the interest that is being added each month (10%APR/12 months).

If you can afford $239 the first month, couldn't you just plan on paying $239 every month and mopping up the last bit of interest in the 11th month?

Oh man my brain is trying so hard to make an equation of this, and not succeeding.

I'm no financial whiz, but I'd say maybe instead of paying 10% of the balance each month you should just pay off as much as you can while still being able to pay rent and buy food? but then again, I'm a pretty risk-averse person, financially

Also, multiplying by 0.9083 should factor in the interest that is being added each month (10%APR/12 months).

― nickn,

Using this, your total balance crosses below $100 at the 34th month

I'll hopefully have it paid off after the next round of Ebay auctions. I just got curious about how long such a weird process would take.

First link seems to have done the trick - 3 years, 8 months

Don't you want to mpy by 0.9? 10% reduction means you're left with 90% of the starting value.

― nickn, Tuesday, July 13, 2010 5:10 PM Bookmark

Yes, that's what I meant. Thank you.

xp Is this a weird process? I thought paying a set percentage minimum was pretty standard (in the UK). This is what I have and then I usually pay off what I can on top of that. (Reading the rest of the stuff in my link is why you should avoid making minimum payments only...)

just divide the monthly payment into the quarterly percentage of the amount owed minus the interest, then split that into equal three quarter instalment of the final balance and you should be fine.
unless you divided it by the percentage of a leap year then you'd be owing on you final payment.