WHY PAYING THE MINIMUM ON YOUR DEBT IS BAD

WHY PAYING THE MINIMUM ON YOUR DEBT -IS BAD- $15,355 CREDIT CARD DEBT The average U.S. household has more than $15,000 in credit card debt, according to a 2014 NerdWallet analysis. A CREDIT CARD DEBT OF $10,000 Interest significantly increases the amount you need to pay back and often we're completely unaware of how much that is. For example, if you have a $10,000 credit card debt at 20% interest where you pay a minimum payment of $200 a month, you will end up taking 9 years and 8 months to pay off the actual amount of $21,680 including $11,680 in interest! AT 20% $11,680 INTEREST INTEREST WITH A MINIMUM PAYMENT OF $200 A MONTH TOTAL: $21,680 TAKING 9 YEARS AND 8 MONTHS TO PAY OFF The average balance per open credit card is of people believe they had the same or less debt than the average. 90% $1,157 GET OUT OF DEBT TIPS DON'T GET IN THE HABIT OF PAYING THE MINIMUM First, break the habit of paying only the minimum required each month. Paying the minimum - usually 2% to 3% of the outstanding balance - only prolongs the agony. Besides, it's precisely what the banks want you to do. The longer you take to repay the charges, the more interest they make, and the less cash you have in your pocket. %24 PAY DOUBLE OF 2 YOUR MINIMUM S X2 Instead, bite the bullet and pay as much as you can each month. If your minimum payment is $100, double that to $200 or more. Examine your normal expenses - you can find the money. TRANSFER HIGH INTEREST DEBT TO LOW INTEREST ACCOUNTS Take a long, hard look at all your credit cards. Pay particular attention to the one with the lowest interest rate. Have you reached the maximum limit on that card? If not, consider transferring a higher-interest bill to that one. Many credit cards permit this, and it's positively foolish to trade an 18% debt for one at 12%. SOURCES: money.usnews.com/money/personal-finance/slideshows/10-easy-ways-to-pay-off-debt lifehack.org/articles/money/how-pay-off-debt-fast-using-the-stack-method.html fool.com/personal-finance/credit/9-ways-to-pay-off-debt.aspx statisticbrain.com/credit-card-debt-statistics Brought to you by: İSETTLEMENTS.COM www.isettlements.com