Buying Stuff on Credit is Expensive

OSTUFFONEIS huph y S GOBankingRates MONEY EXPENSIVE 2 INTEREST ES RATES DEFINED national average APR is 14.7%. The interest rate, or annual percentage rate (APR), is charged when a balance is held on a credit card. It's applied each month that an outstanding balance is present. The current PAYING DOWN YOUR L $5,000 Here's an example of what you'd pay over time if you charged $5,000 to your credit card, paying only $100 per month, with an interest rate of 14%. Examples below show how much interest is paid if this monthly payment increases. DEBT at 14% interest rate I$100/MONTH IF YOU PAID... INTEREST PAID $200/MONTH OVER 30 MONTHS INTEREST = $864.54 AMOUNT $2,409.68 TOTAL 75 MONTHS INTEREST PAID $7,409.68 $600,36 AFTER 75 MONTHS $300/MONTH OVER 19 MONTHS INTEREST = $520.92 12 MONTHS INTEREST PAID $2,038.64 $500/MONTH OVER 11 MONTHS INTEREST = $282.60 48 MONTHS INTEREST PAID $1,177.45 24 MONTHS INTEREST PAID $1,661.51 $1,000/MONTH OVER 6 MONTHS INTEREST = $120.81 36 MONTHS MAJORE CAUSES FOR CAR REPAIR • HOME REPAIR • GROCERIES • UTILITIES • GAS CONTRARY TO WHAT YOU MAY THINK, HIGH BALANCES ARE NOT USUALLY CAUSED BY EXTRAVAGANT SPENDING OF AMERICAN SPEND MORE THAN THEY EARN INCOME SPEND 11%OF U.S. CONSUMERS USUALLY PAY ONLY THE MINIMUM CREDIT CARD BALANCE 40% [INCLUSIVE OF 11%] DO NOT PAY OFF THEIR BALANCE IN FULL EACH MONTH 60% ALMOST ALWAYS PAY OFF THEIR CREDIT CARD BALANCE IN FULL EACH MONTH WHAT DOES THAT 3CREDIT PAYING ONLY $25/MONTH @ 14% INTEREST URSE HDTV DIAMOND RING$3,500 THIS PAYMENT DOES NOT COVER THE INTEREST, LET ALONE THE PRINCIPAL. YOU WILL NEVER PAY THIS OFF. $433.57 OVER 18 MONTHS $1,242.89 OVER 50 MONTHS Sources: www.hoffmanbrinker.com, www.consumerreports.org, www.wsj.com, www.nasdaq.com BUYING BORROW PAID BALANCES