We all have credit cards, but do we pay our entire balances off each month or do we make the minimum payments? Here are some credit facts on making minimum monthly payments.
A $5,000 monthly balance at 18% interest, making the minimum monthly payment of 2.5% which is $125 per month will take 313 months (26.08) years to get out of debt. The interest alone is $7,115.42 plus the original $5,000 monthly balance equals a grand total of $12,115.42.
A $10,000 monthly balance at 18% interest, making the minimum monthly payment of 2.5% which is $250 per month will take 382 months (31.8) years to get out of debt. The interest alone is $14,615.49 plus the original $10,000 monthly balance equals a grand total of $24,615.49.
Both examples assume of course there are no other charges made to the card.
Questions or comments write or email:
eugenedougherty@howardhanna.com
http://www.eugenedougherty.howardhanna.com/
YOUR Personal Guide to Real Estate
Sunday, July 20, 2008
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