1. What is the Credit Card Repayment Formula?

The credit card repayment formula estimates the time required to pay off a credit card balance when making fixed monthly payments. It accounts for the principal balance, monthly payment amount, and annual percentage rate (APR).

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 (APR / 12)
• \( T \) — Time to pay off (months)

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

3. Importance of Repayment Calculation

Details: Understanding repayment time helps consumers make informed decisions about credit card usage, payment amounts, and debt management strategies.

4. Using the Calculator

Tips: Enter the current credit card balance, your planned monthly payment amount, and the card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to be above a certain amount?
A: Your payment must exceed the monthly interest charge (P × R) or the debt will never be paid off.

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount or negotiate a lower interest rate with your bank.

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

Q4: Are there fees not included in this calculation?
A: Yes, late fees or annual fees would affect actual repayment time but aren't included here.

Q5: How accurate is this calculator?
A: It provides a good estimate for fixed payments, but actual results may vary with changing rates or payment amounts.