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|Mon, 06-09-2003 - 9:11am|
The basic premise is that if you create no new debt and pay more than the minimums eventually over time the debt will disappear. Correct?
How do I figure out the calculations to pay off the debts. I know this sounds dumb but the interest is messing me up on trying to figure out how long it will be. I only just realized that our visa bill with a balance of 380 paying the min. they ask is 12 but 5 in interest goes on every month so really we are only paying 7 towards the principal if we make only the min. ( but we haven't been)
I guess I just want to understand our other bigger debts better.
Do I take the balance owing divided by the payment = number of months until 0?
And the interest payment every month is balance x interest rate = interest/mth
then payment - interest/mth = amount coming off principal?
I probally have made this more difficult than it has to be. I am just so confused.