Principles
of Savings
The power of $50 a month
Paying down your credit cards 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 percent, and pay only the 2% minimum monthly payment of $60 per month,
it would take you 8 years to pay off your bill. 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 to save
you 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 3 years
and save over $1800 in interest payments.
So, $50 a month can be quite powerful!
Imagine what you could do with $100
more per month. |
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