WE WILL SHOW HOW TO PAY OFF YOUR BILLS IN HALF THE TIME
Credit cards are one of the most expensive ways to purchase goods. The Annual Percentage Rate
(APR) can be as high as 25%, with the average being around 18% (as of 1996).
Credit card companies structure payment plans so that it will take you a very long time and
a lot of money to pay your debts. Many companies have minimum monthly payment percentages as low as 2%. Even though this may
make it easier to swing the monthly payments, it will increase the length of time it takes to pay off the balances on your
Did you know that if you buy a $1,400 big screen TV with a credit card that carries a 21%
Annual Percentage Rate (APR), you will end up paying a total of $3,707.62, and it will take you 182 months (15 years,
2 months) to pay it off? (This assumes the credit card company requires you to pay a minimum monthly payment of 2.5% of the
remaining balance, or $15, whichever is larger. This also assumes that you never buy anything else with that card.)
If you have a $2,500 balance on your card, as the average person does, it will take you 259
months (21 years, 7 months) and you will have paid a total of $7,374.29! Once again, this assumes that you never buy anything
else with that card.