Get out of debt sooner
Posted on October 24, 2007
Filed Under Advice | Comments Off
Let’s say you have $10,000 in credit card debt and your current minimum payment is $250. At 18% with a minimum payment of 2.5% it will take you 382 months to be rid of your debt. In that time, you will pay $14,615.49 in interest. Fun.
If you pay a fixed payment of $250 dollars (your current minimum payment), it will take you 62 months to be rid of your debt. In that time, you will pay $5,386.23 in interest. Still pretty crappy.
If you managed to cut your expenses by $200 a month and applied that amount to your current minimum payment, then paid that amount ($450) it would only take you 28 months to be rid of your debt. In that time, you would pay $2,255.56 in interest.
Still not convinced? You can use this calculator from Bankrate to determine how much money you’re wasting by not paying off your credit card debt as quickly as you can. Getting out of debt will make you feel better than watching TV in a new pair of shoes ever could.
Those of you who got yourselves out of credit card debt, which expenses did you cut? What advice do you have for people who are drowning in high interest credit card debt? Let’s hear it!