Payment Showdown: Race to a Zero Balance

PAY ME NT SHOWDOWN RACE TO A ZERO Balance Jehold Cred credit card balance Typical minimum payment: 7,000 If you're faced with paying off thousands in debt, you aren't 1-2% alone and you can regain control of your debt. But in order to get those balances down to $0 you Each major credit card issuer calculates minimum payments a little differently. need to understand what happens if you only make the minimum payment – and more importantly - what happens if you pay more. What's your Minimum? 1% * interest & fees Credit of balance 15 Only paying the minimum payment due on your credit of balance 2% + interest & fees Bek of America of balance 1% + interest & fees card not only extends the time it takes to pay off your balance, but it also increases the amount of balance + interest & fees DISCOVER CHASE O 2% 520 of balance 2% * interest & fees 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. Pays the minimum payment of $140 each month 6 years & 5 months + $4,053.84 in interest $0 BALANÇE 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 $O BALANCE Jerry $9,646.84 The Winner! 3 years & 1 months Pays the minimum payment of $140 + $1,761.31 in interest $0 BALANCE $8,761.31 By finding an extra $100 each month, Kate not each month + $100 Kate 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 Cutting out Skipping $4 coffees every Saving just $.50 a day for a Cutting just Selling old clothing, home Cancelling Packing your lunch just one dinner at your gym membership premium movie weekday adds up to a restaurant a month channels will accessories, and month will twice a week save about more, could could save add up to could save $80 $80 a month could save $30 net you an extra up to $15. $60. $50 a month. $40 a month! a month. a month. $385 If you implemented all of these tips you would have an extra CompareCards.com Compare. Pick. Save. each month to put toward your credit card debt! THE STATS American erage Avera American Card. Interest Rate Average. card Deb