Apr

22

Commercial: CITI
“If you are stuggling to make payments your credit card is here to help”

Who exactly are these jokers talking to?

Those of us that do not use credit card all that much?

–or–

The people that have a problem with credit they fed more and more credit to for years and now have jacked up their rates to over 30%?

Many people that carry balances have found their credit line slashed (not such a bad thing) and their monthly interest rates raised above 30%.

Credit card companies have a captive audience they can now feed upon like loan sharks for awhile. These organizations screwed you by providing you access to cheap credit. Now they are screwing you by charging you massive interest.

What does 30% interest look like on a 10,000 balance?

If you plan on paying off the card in 36 months it looks like this:
Monthly Payment: $424.52
Interest Paid: $5,287.57

Back when you had a 12% rate it would have cost you $332.14 a month to pay off the balance over three years.

If you continue to make the minimum monthly payment (4% per month on the unpaid balance) here is what that looks like
Payment Period: 10 years
Interest Paid: $13,949.00
Balance still owed after 10 years: $1630.60

You monthly payment at $10,000 is $400.00. The balance declines each month. But, the credit card company is counting on you to continue using your card to keep the balance at or around $10,000.

A serious question for you…

Are your planning on no longer using your card?

Welcome to financial slavery.

It is time to cut up those cards and start paying them off. If you can trasnfer the balance to a lower interest card do so. But pay it off. Even if you can get a 20% rate it will only cost you $371.64 to pay it off over 4 years. That saves you a bit over $50 a month.

You will find more information and a link to a free Excel spreadsheet you can use to figure out how to get out of credit card debt.
http://www.everydollarmatters.com/your_debt.php

 


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