Security Bank Credit Card Calculator

Credit Card Payoff Formula:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \]

Time to Pay Off:

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1. What is the Credit Card Payoff Calculator?

This calculator estimates how long it will take to pay off your Security Bank credit card debt based on your current balance, monthly payment, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \]

Where:

\( P \) — Principal balance (PHP)
\( D \) — Monthly payment (PHP)
\( R \) — 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 and can motivate you to 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. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does my debt never get paid off?
A: If your monthly payment is less than the monthly interest (P × R), your balance will grow instead of shrink.

Q2: How can I pay off my debt faster?
A: Increase monthly payments, reduce spending, or transfer to a lower-interest card.

Q3: Is this calculator accurate for Security Bank cards?
A: Yes, it works for any credit card with fixed-rate interest and fixed monthly payments.

Q4: Does this include annual fees or other charges?
A: No, it only calculates based on principal and interest. Additional fees would require larger payments.

Q5: What's the best strategy to pay off credit card debt?
A: Pay as much as possible each month, target highest-interest cards first (avalanche method).