5 key rules every consumer should know
What You Don't know Will Hurt You!
Many people consider it a good sign when their credit card’s monthly minimum payment goes down. After all, that generally means you’ve been paying your credit card bills on time and steadily decreasing the balanced owed -- right? And now you don’t have to pay as much every month, so that’s a win-win! Right?
Well, maybe not. The credit card company does lower your payment based on your overall balance, but what that really means for you is not that you’ll pay less, but that you’ll pay more in the long run because of interest and fees. Paying a lower monthly minimum does free up some of your disposable income, but at a much bigger price down the road.
You might be wondering, though: How much more will my credit card payoff amount ultimately add up to if I only pay the minimums until it is paid off? Our Credit Card Payoff Calculator can answer that question for you. Knowing exactly what it is costing you to carry a balance on your credit cards can help you decide whether to keep making the minimum payments, get more aggressive and pay off your debts faster, or apply for a credit card debt consolidation loan to help you get all your cards under control at once.
Use CAPC’s easy to use, free credit card debt repayment calculator to give you an idea of how much those balances are really costing you -- so you can get motivated to do something about them!
Let use an example credit card with
Below are the total costs in time and interest for this card if you the consumer only paid the minimum monthly amount each month as required by your provider.
From this example, you can see that this initial $5,000 has cost you A LOT more in the long run by having paid only the minimum monthly amount required of your monthly statements. How can you prevent this from happening to you? By reducing both the time required to pay off the debt and the interest charges this debt accrues.
There are ways to reduce your time and interest paid on that credit card. Lets continue to use our example with:
By just paying $25 extra above the minimum payment every month our example credit card pays off in:
By paying our example $110 exactly every month instead of the minimum payment, our example credit card pays off in:
Try our handy free credit payoff calculator to see just how much that credit card is going to cost you, or to see how you can pay off your existing debt a bit faster. If you find that you won't be able to afford that credit card after all, then request a Free Debt Management Quote from CAPC and let us show you how to lower or eliminate your consumer credit card debt today!