Got an extra dollar to spare … For your Credit Cards?
So can you spare a buck a day?
If so, maybe you can apply an extra $30 a month to your credit card bill. If so, you will be paying to finance $360 a year less, which with interest rates approaching 27% on some cards can be substantial! This is especially true if you have only been paying the minimum balance and found that you are not getting anywhere trying to pay off your balances.
This same approach can also work on car loans and some mortgages. Look at the monthly payment as a minimum and try to kick in a bit extra when you can. I am here to tell you, but nothing is so satisfying as watching those balances decline so you can think about the day when you do not have monthly loan balances to make payments on!
In addition to saving money in the long run, you will also reduce the length of time it takes to pay the bill off. So go ahead and buy the cheap coffee instead of the grande latte, and get that debt paid off!
If you haven’t been here already, why not visit our online debt payoff calculator and see how fast you can lower that debt?
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Debt Pay Off Calculator
How Long To Pay Off Debt With Minimum Payments?
You may wonder how long it will take to pay off a credit card or other unsecured loan by making the minimum payment. Well, I have to tell you that if have run up a substantial balance, let’s say a few thousand dollars, it will take awhile if you can manage it at all. Let’s say you have a fairly moderate $3500 balance. And lets say your interest rate is reasonable, say 14%.
FREE ONLINE DEBT PAYOFF CALCULATOR
Well, if you make $85 a month payments, it can take 4 and a half years, and you will have paid out almost $1200 on interest on that $3500 of debt! If you can swing $150 a month payments, you can reduce your payoff time to about 2 1/3 years, and almost cut the interest in half.
Of course, if you get sucked into the extra services, like credit protection, that the companies try to tack onto your bill, a minimum payment will make even less progress.
debt, loans, credit card, debt payoff, debt reduction, bad credit
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