Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example:
If we apply these rules to the current national debt, using this following assumptions:
- The minimum payment is interest + 1%-2%.
- Calculate for Public Debt held, and Intergovernmental Transfers. (separately , together, or both)
- The interest rate is constant and at the last known rate.
Fill in the boxes
(note: The first box contains the minimum payment and 3-year payoff amounts. The middle box contains the total years to pay off the debt paying only the minimum payment, and 3-years. The last box is the total cost of the debt after paying it off and the 3-year difference savings.)