Credit Card debt can be tricky, especially if you do not know how it works. Making minimum payments on your credit card every month is going to cost you. When credit card companies factor in their interest rate, the bulk of your payment is going towards the interest and not your actual debt. In the end, you could be paying 2-3x more for your purchases leaving you in debt for decades.
If you have a balance of $5,000 with an APR interest rate of 15.99%, and you make the minimum payment of $110, it will take you an estimated 25 years and over $12,000 to pay off the original $5,000 debt.
Try our free handy calculator and see how much your credit card is really costing you. Calculate what you can afford to pay every month and how much you will save by making larger payments. If you find that you can not afford to make larger payments, request a free financial consultation from CAPC and let us see how much money and time we can save you.