Payment Showdown: Race to a Zero Balance

PAY MENT SHOWDOWN RACE TO A ZERO Balance Houschold Typical minimum credit curd balance payment: 7,000 If you're faced with paying off 1-2% thousands in debt, you aren't alone and you can regain control of your debt. But in order to get Each major credit card issuer calculates minimum payments a little differently. those balances down you need to understand what happens to What's your if you only make the minimum Credit payment – and more importantly - what happens if you pay more. of balance 1%* interest & fees Minimum? 15 of balance 2% * interest & fees Only paying the minimum payment due on your credit card not only extends the time it takes to pay off your balance, Bankef Amerie of balance + interest & fees 1% DISCOVER of balance of balance 2% interest & fees CHASE O 2% interest & fees but it also increases the amount +$20 you pay overall. The Players THE SHOWDOWN Tom, Sue, Jerry, and Kate all have a credit card balance of $7,000. The interest rate on their cards is 15%. See what happens when they start making payments - and who gets their balance down to $0 first. 6 years & 5 months Pays the minimum payment of $140 each month $0 + $4,053.84 in interest BALANCE Tom $11,053.84 Pays the minimum payment of $140 each month + $20 5 years & 3 months + $3,195.71 in interest $0 BALANCE Sue $10,195.71 4 years & 5 months + $2,646.84 in interest Pays the minimum payment of $140 each month + $40 $0 BALANCE Jerry $9,646.84 3 years & 1 months + $1,761.31 in interest so The Winmer! Pays the minimum payment of $140 each month + $100 BALANCE Kate $8,761.31 By finding an extra $100 each month, Kate not only paid her balance off in half the time, she also saved $2,292.53 in interest charges. Finding the EXTRA CASH If you're already struggling to make your minimum payments, you might be wondering where you'll find an extra $100 a month. But it can be done! Take some of these creative money saving tips straight to the bank. SALE Skipping $4 Cutting just Cutting out Selling old Cancelling Saving just $.50 Packing your lunch just twice coffees every one dinner at premium movie clothing, home a day for a your gym membership a restaurant a month weekday channels will accessories, and month will week adds up to save about more, could could save add up to could save $80 net you an extra up to could save $30 a month. $40 $15. $80 a month. a month! $60. $50 a month. a month. $385 If you implemented all of these tips you would have an extra CompareCards.com Compara. Pick. Savo. each month to put toward your credit card debt! THE STATS merican perase Aver American& Aperage Card mtereat card Deb