This is a really interesting calculator that allows you to calculate the real damage you’re doing to your finances when you buy something with credit.
You’ll find the calculator on the right side of the page. You enter the cost of what you’re buying, then fill out what your interest rate is, the balance that you’re carrying on that card, and how many payments you make a month. Next, click the What the Damage button above the table you just filled in. It will then calculate how much the item you want to purchase will really cost you in the long run.
The point of this is to help you make better decisions about what you’re buying. If a $75 dollar pair of jeans is going to end up costing you $224.63 in the long run would you still buy them? (I used the interest rate of 23.94%, and a balance of $400 with 1 monthly payment to come up with those figures.) I certainly wouldn’t be buying those jeans!
I love that you can figure in multiple payments because a lot of people make more than one payment a month when they are trying to pay down their credit, so now you can figure that in!
I think this calculator is awesome! I hope you’ll bookmark it today and use it to help you weigh your purchasing power.