Let’s do the math, shall we?
You owe: $10,000
Minimum payment: $100
Interest charged: $162.64
See what happened there? Your credit card company got you! You thought that by making your minimum payment you were making a dent, but uh-unh, they got you, your balance is still going to be more next month. And let me quickly calculate when you’ll have this card paid off……umm, never.
You most likely didn’t even notice because at the same time as they were pulling that fast one on you, you weren’t helping; you were charging more on the card.
So, there are two steps to making progress on paying off your credit cards. Firstly, stop exacerbating the problem. Immediately. If you don’t have the money, don’t buy the thing, simple as that.
Secondly, don’t just automatically assume you should pay the minimum payment they’re asking for. Quickly compare it to the new interest you’re being charged. Take whichever of those is the bigger number, add at least $1 to that and voila, you’re officially making a dent!
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