Debt: Minimum Payments could take you 30 years to pay off!
Credit Card Companies Love Minimum Payments
If you are one of the many people carrying credit card debts then you are one of a majority within the American population that do as well as spending more than you earn. You are not Alone!! Debt affects everyone in different ways, some lose sleep over the debts, some stop eating, some hide their debts from family and friends and some unfortunately feel there is never going to be a way out for them. By sweeping the problem under the rug you like millions of others are facing years of minimum payments and increasing interest!
Did you know (much to the delight of the credit card companies) that you can spend up to 30 years paying off a debt of around $6,000! THIRTY YEARS! Let’s say the average life expectancy of an American man is to live till they are around 72 years old. You can't get credit until you are 21 (state dependant some states is 18) so you would be looking at only 21 of your 72 years being free from that debt! Do we now have your attention?
Paying minimum payments on credit cards is exactly what they want you to do, we know it sounds like they are doing you a favor but in all honesty 30 years to pay off a $6,000 debt is no favor to you or your family. If you work out the interest on that alone and then think who will be going on that nice holiday you want, you or the credit card company?
Always pay more than the minimum each month, if you can't do that then call the credit card company and ask them for a lower rate of interest. Don't be afraid of your creditors tell them you want lower payments and lower interest rates. It is in their best interest for you to pay what you have borrowed back otherwise they get out of pocket. And the less you are in debt the more chance you will borrow more.
A drop in your interest rate will mean that you can pay off more of the bottom line rather than keep paying interest every month. If you think you are going to struggle to do this then maybe some of the following would help you put a little extra in:
When doing your weekly shop try to leave the snacks in the shop and when you fancy that bag of chips grab a glass of water instead.
Don’t drive to the local shop for a paper walk not only is it better for the environment but good for you and your pocket.
On the above, you are reading this on the internet so chances are you are connected to the internet so read the news online. Not only will you save money by not buying the paper but you will also get up to the minute news.
There are many ways you can get out of debt and clear your credit cards and other debts a little research could be beneficial along with admitting that you need to deal with the debts you will be surprised how quickly you can turn things around. You could try talking to a credit counselor if you are having problems they can help you put together a repayment plan that will help you pay off your debts.
About the Author
Steven Turner is a retired financial consultant who now provides help and support to people who are looking to get out of debt as well as those looking for a more stable financial future.
Steven has a number of fields of expertise including loans, mortgages and consolidating debt. His website The Affiliate Truth offers information and advice on all areas of the financial world.
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