Avoid the Minimum Payments Trap!
Learn the true costs of paying the monthly minimum on your credit cards!
Let’s say you have a total balance of $4,000 on your credit cards. If you pay just the 3% minimum payment every month, you would pay a total of $13,843 for your debt, including $9,843 in interest charges, and you would have to make payments for 34 years! (This example assumes that you don’t charge more...which may be unrealistic for many Montana families).
However, if you doubled your minimum payment every month, you would only be in debt for 10 years and pay $2,222 in interest, saving $7,621.
Minimum Payment Situations:
The slide calculator for finding answers to the situations below is contained in a packet that is free to Montana residents. For out-of-state residents, to order the Credit Card Smarts calculator go to: www.advantagepublications.com
- Credit Cards: The Minimum Payments Trap! (uses 3% minimum examples) (88 slides) November 2012