Tag: minimum payment

5 common credit card habits that cost you

5 common credit card habits that cost you

Most of us are guilty of some bad habits in our lives. There are too eat the fun stuff, and not exercising enough to burn, and tomorrow, salary expenses today. Of course, able to obtain and maintain a budget can be difficult to follow patterns, but avoiding these five common bad habits can add a bit of easy money to your bottom line.

1. By paying only the minimum balance. Paying just the minimum balance on your credit card each month to keep your creditors happy, but not to help you pay the interest costs more.

Corporate credit card to highlight the love Minimum Payment Due on your monthly bill – a trick they use to stretch your payments for years, costing you hundreds, even thousands of dollars in interest . For example, a $ 5,000 balance with a minimum monthly payment of 4 percent and an APR of 18 percent will take you a little over 11 years to repay, costs about $ 2,875 in total interest paid.

Do not believe? Discover what the credit card calculator to a good start today and see the real cost of paying only the minimum. The results are shocking, and you can rethink your habits minimum payment because it can cost you thousands.

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