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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:,,, BUYING BORROW PAID BALANCES

Buying Stuff on Credit is Expensive

shared by rmmojado on Jan 23
You know that making purchases using credit cards is expensive if you do not pay off your balance each month. Indeed, carrying a balance on your credit card is one of the biggest ways that people wast...


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