Sunday, March 28, 2010

Check Out Your Next Credit Card Statement

Here's a photo of hubby's most recent credit card statement. Beginning last month, a change to the credit card laws made it a requirement that credit card companies put information on consumer's statements telling them how long it will take to pay off their debt if they only make the minimum payment. Enter the comedy of the absurd (although I am still hoping it will make people pay off their credit card debt faster instead of throwing up their hands in despair). According to this statement...

  • If he only pays the minimum payment each month (about $150, one dollar a month more that what is charged for interest) it will take him 2126 years to pay off the debt and he will have paid a total of $1,718,807.00. Um, yeah...if that doesn't make you want to never touch another credit card I don't know what will.

  • If he pays $377 per month it will only take him three years to pay off this debt with a total payment of $13,573.00 which, the bill helpfully points out, will save him $1,705,235.00 over just paying the minimum amount...ayayay.

Which is why we are throwing every available cent at this debt and we hope to have it paid off by the end of the year. I hate credit cards!!!!

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