![[finance,what?]](http://fbmc.b4g.info/fwlogo.png)
Part 2 – Credit Card Balance Transfer: Your Own Calculation
![[Comment]](http://fbm.b4g.info/comment.gif "Comment/Question")
![[Print]](http://fbm.b4g.info/print.gif "Print This Article")
This is the detail calculation comparing the money saved when you do balance transfer to other credit card discuss in this article. You might want to adjust the interest rate, the current debt and the minimum policy according to your real condition. Just change the data and press the yellow ‘update’ button on the top left (below). Then you can print out this sheet for your further action.
Calculation
Monthly Table
This is the running table for each and every month up to 6 months to give you the real picture how actually your debit card debt being calculated. The calculation is assuming that you don’t use your credit card for additional purchase and paying the same amount debt repayment every month.
| NO BALANCE TRANSFER | 1st month | 2nd month | 3rd month |
| balance at the end of month | $5,000.00 | $4,876.44 | $4,748.58 |
| interest for the month | $76.44 | $72.14 | $72.59 |
| (18.00% x $5000) x (31 /365 days) | (18.00% x $4876.44) x (30 /365 days) | (18.00% x $4748.58) x (31 /365 days) | |
| balance including interest | $5,076.44 | $4,948.58 | $4,821.18 |
| minimum paid | $125.00 | $121.91 | $120.00 |
| Amount you actually paid | $200.00 | $200.00 | $200.00 |
| balance after payment | $4,876.44 | $4,748.58 | $4,621.18 |
| WITH BALANCE TRANSFER | 1st month | 2nd month | 3rd month |
| balance at the end of month | $5,000.00 | $4,812.70 | $4,624.52 |
| interest for that month | $12.70 | $11.83 | $11.74 |
| (2.99% x $5000) x (31365 days) | (2.99% x $4812.7) x (30/365 days) | (2.99% x $4624.52) x (31/365 days) | |
| balance including interest | $5,012.70 | $4,824.52 | $4,636.27 |
| minimum paid | $125.00 | $120.32 | $120.00 |
| Amount you actually paid | $200.00 | $200.00 | $200.00 |
| balance after payment | $4,812.70 | $4,624.52 | $4,436.27 |
As you can see, the interest is ‘capitalized’ (charged to your account) every month and added to the total debt from the previous man. If you have any purchase or payment on that period it will be changed accordingly as well. The next 3 months is as follows:
| NO BALANCE TRANSFER | 4th month | 5th month | 6th month |
| balance at the end of month | $4,621.18 | $4,489.55 | $4,358.18 |
| interest for the month | $68.37 | $68.63 | $64.48 |
| the interest calculation | (18.00% x $4621.18) x (30 /365 days) | (18.00% x $4489.55) x (31 /365 days) | (18.00% x $4358.18) x (30 /365 days) |
| balance including interest | $4,689.55 | $4,558.18 | $4,422.66 |
| minimum paid | $120.00 | $120.00 | $120.00 |
| Amount you actually paid | $200.00 | $200.00 | $200.00 |
| balance after payment | $4,489.55 | $4,358.18 | $4,222.66 |
| WITH BALANCE TRANSFER | 4th month | 5th month | 6th month |
| balance at the end of month | $4,436.27 | $4,247.17 | $4,057.96 |
| interest for that month | $10.90 | $10.79 | $9.97 |
| the interest calculation | (2.99% x $4436.27) x (30/365 days) | (2.99% x $4247.17) x (31/365 days) | (2.99% x $4057.96) x (30/365 days)v |
| balance including interest | $4,447.17 | $4,257.96 | $4,067.93 |
| minimum paid | $120.00 | $120.00 | $120.00 |
| Amount you actually paid | $200.00 | $200.00 | $200.00 |
| balance after payment | $4,247.17 | $4,057.96 | $3,867.93 |
and so on….
The difference
From above calculation, the overall difference after 6 months is $$354.73. Remember that this number is real saving as if you do not do anything, you have to pay that money to the credit card company no matter what – unless you declare a bankruptcy.
Although the money saved is not really spectacular, but that amount will become substantially large amount after a while .
Hope this is useful..
Related Posts
![[signed]](http://fbmc.b4g.info/xtanda.jpg)
- Get new article direct to your email (put your name & email in the form at top right hand corner, press 'Go')...
- Receive update on your RSS reader (click orange chicklet on the top right hand corner & follow the guide)...
- Link to this article from your website or just email the link to a friend (click email icon on the top)?
- Bookmark this article on your online bookmark for future reference. (click the bookmarking icon above)...
Comments