THE POWER OF $50 A MONTH
Paying down your credit card bills can give you real "savings". Paying the minimum due each month can be deceiving.
An example of what $50 can do
If you have a credit card with a $3,000 balance at an annual interest rate of 18%, and pay only the 2% minimum monthly payment of $60 per month, it would take you eight years to pay off your bill without any additional purchases made on your card. Think about that before you HAVE to BUY that item!
By the way, that $60 payment for eight years means you paid in $5,780, not the $3,000 you thought the item or items cost. You would have paid almost twice the original debt over the eight-year period
Now, here's a great idea idea to save your money. If you pay an additional $50 per month on that debt, for a total payment of $110 a month, you would pay off the debt in three years and save over $1,800 in interest payments.
So, $50 a month can be quite powerful! Imagine what you could do with $100 more per month.
Read more: Interest Calculations »
An example of what $50 can do
If you have a credit card with a $3,000 balance at an annual interest rate of 18%, and pay only the 2% minimum monthly payment of $60 per month, it would take you eight years to pay off your bill without any additional purchases made on your card. Think about that before you HAVE to BUY that item!
By the way, that $60 payment for eight years means you paid in $5,780, not the $3,000 you thought the item or items cost. You would have paid almost twice the original debt over the eight-year period
Now, here's a great idea idea to save your money. If you pay an additional $50 per month on that debt, for a total payment of $110 a month, you would pay off the debt in three years and save over $1,800 in interest payments.
So, $50 a month can be quite powerful! Imagine what you could do with $100 more per month.
Read more: Interest Calculations »