Magic Fraction Spreadsheet
Do you have an existing Credit Line with an enormous amount of debt?
You probably know what a Credit Line is. So I won’t insult your intelligence.
But maybe you don’t have a full grasp of how long it will take to pay off your Credit Line(s).
Today, we (Debt Warriors) will provide undoubtedly the best bundle of debt intelligence on how to estimate how long it will take to pay off your existing Lines of Credit.
FYI on the Credit Line
Just in case you don’t know what a Credit Line is, let me get us on the same page. Here’s a quick definition of a Credit Line:
” A Credit Line is an ‘Unsecured Line of Credit”
Credit Lines are called a number of things depending on the Creditor. For example, “Signature Loan”A Credit Line is usually extended for a certain amount of money (i.e. $10,000).
Please be clear, a Credit Line differs from a Credit Card in one specific way.
It is difficult to negotiate a Line of Credit
Most Creditors will not lower the APR on a Line of Credit. Once the borrower (“Debtor”) agrees to the terms of the loan. Terms are on of the 6 C’s of Credit (as seen to the left) - those terms are set in stone. Because of this, a Credit Line can be a weapon, used against you in your War On Debt.
How Long Will it Take to Pay Off Your Credit Line?
I suspect you have an idea of how long it will take to pay off your Line of Credit. But in case you don’t I’ll give you some tips to make you a genius at figuring it out.
First, you’ll need to know what your Annual Percentage Rate (APR) is. Second, you’ll need to understand what percentage of your minimum payment is going toward your outstanding balance. For instance, if your Credit Line is $10,000 with an APR of 15.99% (which is pretty average) you’re required to pay a minimum of $200. In the example above you’d only be paying 2% toward your overall debt.
At the rate cited in the example above, it would take you just under 40 years to pay that Credit Line off. I don’t know if you’re in the mood to shovel out $200 a month for the next 40 years. If you’re not willing to throw away a life times worth of savings, let me offer some helpful information.
How Can You Pay Off Your Credit Line Faster?
Most people would say “pay more” every month. That is a very responsible answer. I would agree. But how do you figure out exaclty how much more to pay every month. A number of my old clients came to me after a few months of making larger payments on their Credit Lines. Today, the common thought amoung many of my clients is, “I thought if paid a little extra (say $50) for a few of months, I can go back and negotiate, but I was turned down.
The trouble with that approach is that it rarely works. Credit Card Companies have Behavioral Economist who build computer programs that instantly detect any change in payment histories. So the Creditor often knows when a Debtor is trying to “game the system”.
Is There a Better Approach?
Yes 
And that approach is to figure out what percentage of your monthly payments are going towards paying off the Line of Credit. This is based on your APR and amount of the outstanding balance on the Credit Line. Once you figure out the APR and Outstanding Balance . The next step is find a comfortable percentage of your income that you can use to pay the Credit Line off faster.
To Order Your Debt Warriors Arsenal Call: 866-576-4996
You could break out the calculator, paper and pencil and spend literally hours trying to figure it out. But it won’t be easy. A better way to figure out what percentage of your income you can afford to pay is to order the Debt Warriors Arsenal or Credit Card Medic.
Debt Warriors provide Magic Fraction Budget Builder™ and access to Professional Personal Finance Software.
These two products alone will help you accurately estimate how long it will take to pay off your Lines of Credit and gain control over your budget. Both the Magic Fraction Budget Builder™ and the Personal Finance Software come with a 3 minute video tutuoral, that teaches you step by step, how to get up and running in less than 10 minutes.
You could spend the rest of the day searching for more tips of how to pay off a Credit Line, or you can order the Debt Warriors Arsenal or Credit Card Medic and learn how to put your savings back in your pocket.
Although I only have one credit card it has very high interest and I look forward to paying it off. According to your calculator, I will be able to do that in 6 months! Thanks I needed an uplift!
Bella