Paying Off Credit Cards Daily Calculator?

[Singuy]

I have a friend who owes 16k in a credit card that has a 30% APR. Assuming it's compounded daily, she is being charged $13/day in interest and then added to her total for the interest to compound the next day.

She currently pays 1000/month.

I was thinking, will paying 1000/30=33 dollars/day save her any significant interest? I am trying to find a calculator that can take out daily payments for me but all the ones I found are monthly.

Reason why she has this debt is because she put a car on a 0% credit card..but her son used the card without telling the mom and destroyed the 0% rate. I am also wondering if she qualify for any type of car loans from the bank.

[disneysteve]

She currently pays 1000/month.

I was thinking, will paying 1000/30=33 dollars/day save her any significant interest?

Reason why she has this debt is because she put a car on a 0% credit card

I think it would be nuts to make a daily credit card payment. The card company may not even allow it. A more reasonable option would be to pay $500 every 2 weeks. That would save her a bit and still be very manageable.

How did she manage to buy a 30K car on a credit card? I've never encountered a dealer who would let me do that.

[JoeP]

And this is how those credit card companies can "afford" to offer 0% rates. All it takes is a handful of people to make mistakes like this. Same goes with rent to own and other 0% offers.

With a balance that big and an interest rate that high, I'd sell the car, pay down the debt.

[Singuy]

She can't pay down the debt by selling the car because then everyone in her family will find out. She lives in a Muslim household with a very "scary husband". She is trying to fix her mistakes secretly which is extremely hard to do..so I am trying to think up all sorts of ways to help her.

I believe the dealership had a deal with the credit card company so she paid 1/4 of the car in down payment and the rest went onto the new credit card (with a 25k limit in which it was maxed out). 1000/month is the max she can afford since she has a lot of other debts(from building an orphanage with money she didn't have).

[disneysteve]

She can't pay down the debt by selling the car because then everyone in her family will find out. She lives in a Muslim household

she has a lot of other debts(from building an orphanage with money she didn't have).

I'm no expert, but I thought the Muslim religion didn't allow interest to be paid on debt. Too bad she can't be honest with her husband and family. It sounds like she's gotten herself into quite a mess. Good luck to her.

[Petunia 100]

I have a friend who owes 16k in a credit card that has a 30% APR. Assuming it's compounded daily, she is being charged $13/day in interest and then added to her total for the interest to compound the next day.

She currently pays 1000/month.

I was thinking, will paying 1000/30=33 dollars/day save her any significant interest? I am trying to find a calculator that can take out daily payments for me but all the ones I found are monthly.

Reason why she has this debt is because she put a car on a 0% credit card..but her son used the card without telling the mom and destroyed the 0% rate. I am also wondering if she qualify for any type of car loans from the bank.

She should absolutely look into a vehicle loan. She should be able to do far better than 30%.

[Singuy]

I'm no expert, but I thought the Muslim religion didn't allow interest to be paid on debt. Too bad she can't be honest with her husband and family. It sounds like she's gotten herself into quite a mess. Good luck to her.

Yes, she had a lot of 0% loans thinking she can pay them off before the craziness starts. She ended up with the 30% loan way too early due to her son's mistake..this is why she is doing everything secretly because interest rates are NOT allowed in their religion(she's a converted catholic).

So she can still get an auto loan even though she technically owns the car?

[disneysteve]

So she can still get an auto loan even though she technically owns the car?

Sure. She could get a loan to essentially refinance the car. If she has a lot of other debt, though, she might have trouble qualifying. Can't hurt to look into it. Hopefully she has a good credit score and the numbers to qualify her.

The new loan still wouldn't be 0% though.

[phantom]

Since no one has addressed the $33/day idea, I will. The best time to put money on debt is always as soon as the money comes in. Sitting on the money to make daily payments will cost more in interest, not less.

Also, if the idea of her husband finding out about this debt scares her so much, I wonder if she wouldn't be better off seeking relationship help than debt help. If he's just going to be mad and yell a lot, I'd tell him and get it over with so they can start fixing the problem together. Better to tell him now than have him find out on his own, especially if this gets worse before it gets better. If she fears for her physical safety, I'd suggest looking for a way to get away from him.

[Randomsaver]

If she starts paying in next month the $1K from a starting balance of $16k on a 30% interest, she'll be able to finish by Mar 2017. Not bad at all.

Here's the schedule. Int = Interest ; Prn = Principal ; PrnA = Principal Additional


Int Prn PrnA TotPrn TotPay BalBeg BalEnd
Jun-15 16,000
Jul-15 400 600 - 600 1,000 16,000 15,400
Aug-15 385 615 - 615 1,000 15,400 14,785
Sep-15 370 630 - 630 1,000 14,785 14,155
Oct-15 354 646 - 646 1,000 14,155 13,508
Nov-15 338 662 - 662 1,000 13,508 12,846
Dec-15 321 679 - 679 1,000 12,846 12,167
Jan-16 304 696 - 696 1,000 12,167 11,472
Feb-16 287 713 - 713 1,000 11,472 10,758
Mar-16 269 731 - 731 1,000 10,758 10,027
Apr-16 251 749 - 749 1,000 10,027 9,278
May-16 232 768 - 768 1,000 9,278 8,510
Jun-16 213 787 - 787 1,000 8,510 7,723
Jul-16 193 807 - 807 1,000 7,723 6,916
Aug-16 173 827 - 827 1,000 6,916 6,089
Sep-16 152 848 - 848 1,000 6,089 5,241
Oct-16 131 869 - 869 1,000 5,241 4,372
Nov-16 109 891 - 891 1,000 4,372 3,481
Dec-16 87 913 - 913 1,000 3,481 2,568
Jan-17 64 936 - 936 1,000 2,568 1,632
Feb-17 41 959 - 959 1,000 1,632 673
Mar-17 17 673 - 673 690 673 0

[Randomsaver]

That table didn't turn out well. Re-try.

This should be cleaner.

It basically says in Jul 2015, 400 goes to interest, 600 goes to principal. Without additional principal payment, the total principal remains at 600. Total payment is 1000 (400+600). Beg balance of 16,000 will diminish by 600 which leaves End balance of 15,400.


Mon | Int | Prn | PrnA | TotPrn | TotPay | BalBeg | BalEnd
Jul-15 | 400 | 600 | - | 600 | 1,000 | 16,000 | 15,400
Aug-15 | 385 | 615 | - | 615 | 1,000 | 15,400 | 14,785
Sep-15 | 370 | 630 | - | 630 | 1,000 | 14,785 | 14,155
Oct-15 | 354 | 646 | - | 646 | 1,000 | 14,155 | 13,508
Nov-15 | 338 | 662 | - | 662 | 1,000 | 13,508 | 12,846
Dec-15 | 321 | 679 | - | 679 | 1,000 | 12,846 | 12,167
Jan-16 | 304 | 696 | - | 696 | 1,000 | 12,167 | 11,472
Feb-16 | 287 | 713 | - | 713 | 1,000 | 11,472 | 10,758
Mar-16 | 269 | 731 | - | 731 | 1,000 | 10,758 | 10,027
Apr-16 | 251 | 749 | - | 749 | 1,000 | 10,027 | 9,278
May-16 | 232 | 768 | - | 768 | 1,000 | 9,278 | 8,510
Jun-16 | 213 | 787 | - | 787 | 1,000 | 8,510 | 7,723
Jul-16 | 193 | 807 | - | 807 | 1,000 | 7,723 | 6,916
Aug-16 | 173 | 827 | - | 827 | 1,000 | 6,916 | 6,089
Sep-16 | 152 | 848 | - | 848 | 1,000 | 6,089 | 5,241
Oct-16 | 131 | 869 | - | 869 | 1,000 | 5,241 | 4,372
Nov-16 | 109 | 891 | - | 891 | 1,000 | 4,372 | 3,481
Dec-16 | 87 | 913 | - | 913 | 1,000 | 3,481 | 2,568
Jan-17 | 64 | 936 | - | 936 | 1,000 | 2,568 | 1,632
Feb-17 | 41 | 959 | - | 959 | 1,000 | 1,632 | 673
Mar-17 | 17 | 673 | - | 673 | 690 | 673 | 0

[Singuy]

Since no one has addressed the $33/day idea, I will. The best time to put money on debt is always as soon as the money comes in. Sitting on the money to make daily payments will cost more in interest, not less.

Also, if the idea of her husband finding out about this debt scares her so much, I wonder if she wouldn't be better off seeking relationship help than debt help. If he's just going to be mad and yell a lot, I'd tell him and get it over with so they can start fixing the problem together. Better to tell him now than have him find out on his own, especially if this gets worse before it gets better. If she fears for her physical safety, I'd suggest looking for a way to get away from him.

You are totally right about not sitting on the money and paying it as soon as you have the money! Amazing I didn't think of it that way.

As for the other situation, the husband divorced her religiously once(got nothing to do with her secret debt) and she turned into a mess(probably why she got into all this debt). Even though I think she's better off single, but she's too nice and traditional.