Paying With Credit? App Shows You The True Cost

(Android-only) Inspired by our coverage, Consumerist reader Rick came up with a nifty app to show you the true long-term cost of putting that latte on the credit card.

The free, ad-supported app lets you punch in your purchase and see how long it will take you to pay it off if you put it on your credit card. You can customize by your interest rate and your bank’s minimum payment formula, or just use the default one provided by the U.S. Office of the Comptroller of the Currency.

The developer writes:

Earlier this year you posted an article on a website that calculates the real cost of credit cards.

Inspired by that post, and as a way of learning Android development, I wrote a little Android app that I put in the Android marketplace for free.

My intent was to provide a quick and simple tool that would be easy to use when you’re about to make a purchase. I know that many people maintain running balances, and my hope is that when they’re about to make a purchase for a discretionary item that they’ll make the decision informed of the real out-of-pocket cost.

Nifty! One more step to making more informed purchases, and, potentially, one step closer to paying in cash.

Credit Cost [Handster]
Credit Cost [Android Marketplace]