Although minimum monthly payments for credit cards can make that balance appear manageable, here's why you shouldn't just pay the minimum:
You might want to think twice before only making the minimum payment on your credit card.Terry Knight, the 31-year-old founder of Spark Ads Agency in Sunny Isles Beach, Florida, can tell you a thing or two about credit card debt. Some 10 years ago, while still in school, he was laid off from a part-time job and started using his credit card to help pay living expenses.
“I was getting hit with $380-$400 each month in interest alone,” Knight says. “The balance just kept going up.”, the average credit card balance in Q2 of 2019 was $6,194; the average interest rate in Q3, also according to Experian, was 13.80% .
For example, say you have a credit card with the national average balance of $6,194. Assume the card has a 17% interest rate and a minimum payment of 2% of the total balance. If you only make the minimum payment, it will take you over 30 years pay it off in full—and the total payments will amount to $19,427.17,. And that’s assuming you never buy one more thing with that card!
. Doubling the minimum payment will result in the balance being paid off in 2 years, 8 months with total payments at $7,700.57.Making the minimum payment on a card will keep your credit score intact, since you aren’t skipping a payment. But keep in mind that only making minimum payments on multiple cards could make it easy for you to continue overspending until you end up with unmanageable debt.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Why Redbox Is Moving Into Free, Ad-Supported Streaming VideoRedbox, best known for its network of fire-engine-red DVD-rental kiosks, has thrown its hat into the free-TV ring — with an ad-supported service that looks a lot like ViacomCBS’s Pluto …
Les mer »
Denied because they're deaf: Why one Maryland school continues to host unofficial cadet programDenied because they're deaf: Why one Maryland school continues to host unofficial cadet program originally appeared on abcnews.go.comFrom afar, the formation of students in military uniforms saluting their captain looks like any other cadet program around the country. But there’s one giveaway that
Les mer »
Samsung Galaxy by Thom Browne: Why ‘Designer Cell Phone’ Is No Longer a PunchlineLast week’s debut of limited edition Samsung Galaxy Z Flip in partnership with American fashion designer Thom Browne reflects how more consumers are now viewing cell phones as a luxury item.
Les mer »
Justin Bieber Teared Up Explaining Why He Wants to 'Protect' Billie Eilish'Let her do her thing, and if she ever needs me, I’m gonna be here for her.'
Les mer »
'The New Normal': Why Indie Artists Are Releasing Music at a Much Faster Rate in 2020Within the last year-and-a-half, artists on labels like Domino, Polyvinyl, Sup Pop, Barsuk, Saddle Creek, Matador and many other rock-oriented indies within that world have been putting out music at a more-frequent rate.
Les mer »
Why We're Fighting To Keep Polling Places On College CampusesRaven Douglas, Political Director of MOVE Texas, on why young people need to get out and vote
Les mer »