1. What is the Credit Card Repayment Calculator?

The FNB Credit Card Repayment Calculator estimates how long it will take to pay off your credit card debt when making fixed monthly payments. It considers your current balance, monthly payment amount, and interest rate.

2. How Does the Calculator Work?

The calculator uses the credit card repayment formula:

Where:

• \( P \) — Principal balance (ZAR)
• \( D \) — Monthly payment (ZAR)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( T \) — Time to repay (months)

Explanation: The formula calculates how many months it will take to pay off the debt by considering how each payment affects the principal and the compounding interest.

3. Importance of Repayment Calculation

Details: Understanding your repayment timeline helps with financial planning, budgeting, and evaluating different payment strategies to reduce interest costs.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you can afford, and the annual interest rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low?
A: If your monthly payment doesn't cover the interest charges, your debt will never be repaid. The calculator will warn you in this case.

Q2: Does this account for minimum payments?
A: No, this assumes fixed payments. Minimum payments typically extend repayment time significantly.

Q3: How accurate is this calculation?
A: It's mathematically precise for fixed payments and interest rates. Actual results may vary if rates change or payments fluctuate.

Q4: Can I use this for other loans?
A: This formula works best for credit cards. Mortgage and installment loans use different amortization methods.

Q5: How can I pay off my debt faster?
A: Increase monthly payments, make bi-weekly payments, or transfer to a lower-interest card if possible.