1. What is the Maybank Credit Card Payoff Calculator?

The Maybank Credit Card Payoff Calculator estimates how long it will take to pay off your credit card balance based on your current principal, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( P \) — Principal balance (MYR)
• \( D \) — Monthly payment amount (MYR)
• \( R \) — Monthly interest rate (APR/12)
• \( T \) — Time to payoff (months)

Explanation: The formula calculates how many months it will take to pay off the debt given fixed monthly payments and compound interest.

3. Importance of Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning, debt management, and evaluating whether you should increase payments to reduce interest costs.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you can afford, and your card's APR. The calculator will show how long it will take to become debt-free.

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to exceed the monthly interest?
A: If your payment only covers interest (or less), your principal will never decrease and you'll never pay off the debt.

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount, make bi-weekly payments instead of monthly, or transfer to a lower-interest card.

Q3: Does this account for minimum payments?
A: No, this assumes fixed payments. Minimum payments typically extend payoff time significantly.

Q4: What if my APR changes?
A: This calculation assumes a fixed APR. If your rate changes, you'll need to recalculate.

Q5: Are there fees not accounted for in this calculation?
A: Yes, this doesn't include potential late fees, annual fees, or other charges that may apply.