There are millions of Americans out there who have paid large credit card debt, and you can be one of them. To get rid of credit card debt, not be enough, however, only make minimum monthly payments. In fact, just do a little more to pay the minimum monthly payments, you can save thousands of interest and shorten many years in settling your credit card debt. To give a better idea of how it works, we will use a study case to develop the solution.
A friend of mine asked me to take a look at your monthly statement credit card, she said, has stopped using this credit card and try to pay it, but feels he is getting nowhere.
The card credit record statement shows your balance is $ 5218.00 and she is paying 18% interest, and is paying the minimum payment at 3.5% or $ 10 is greater. Like many who confuse financial matters, thinks that while they stop using the card and only pay the minimum monthly balance, your credit card debt be cleared soon.
The calculation results:
If you have stopped using this credit card, and if she continues to do the minimum required monthly payment, as it has been based on how your bank calculates your monthly minimum payment required.
It will take 181 months to pay your current balance on your card credit of $ 5218.00 and paid a total of $ 3762.35 in interest.
In other words, if we continue doing what she has been doing. It takes her 15 years and cost $ 8980.35 to pay balance of $ 5218.00 credit card. No wonder he feels as if she gets anywhere.
Then, What do you do?
In fact, it's easy to quit, if you can pay the minimum payment of $ 5218.00, which is $ 181.37, which means that this is the affordable amount. Instead of paying the minimum payment set by the credit card company is still paying $ 181.37 from now.
As a result, you pay this credit card in 43 months instead of 181 months and she will pay $ 1635.45 in interest instead of $ 3762.35 in interest, saving $ 2126.90 in interest charges. See the difference?
What can be more?
If you really want to go for it, could increase the amount of his "new" self-imposed minimum monthly payment required. For example, if you were to start paying an additional $ 18.63 per month for a total of $ 200.00 per month.
She will pay off this credit card in 34 months instead of 181 months and she will pay $ 1428.30 in interest instead of $ 3762.35 in interest, saving $ 2334.05 in interest.
If that were to begin paying an additional $ 68.63 per month for a total of $ 250.00 per month, you pay this credit card in 26 months instead of 181 months and she will pay $ 1071.09 in interest instead of $ 3762.35 in interest savings of $ 2691.26 in interest.
If you really want to eliminate your debt credit card as soon as possible and is able to financial support, which could double the amount of your "new self-imposed minimum payment required monthly. If I had to start paying $ 362.74 per month instead of $ 181.37 per month, which could pay off your balance credit card in 17 months.
There are a number of things he could do, but this is one of the simplest and is something she can start doing now to begin the elimination of credit card debt. You can do the same to begin to eliminate your credit card debt.
If all you do is stop charge your credit card in card and keep doing the same required minimum monthly payment you will make in your credit card this month, every month from now, you will make significant progress towards the total elimination of debt credit card once and for all.
Cornie Herring is the author of target = "_blank"> target = "_blank" href = "http://www.studykiosk.com/CreditBasics"> http://www.studykiosk.com/CreditBasics. "Fundamentals StudyKiosk-credit" is an informational website on credit basis, target = "_blank"> debt consolidation and the bankruptcy.
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