Credit card debt is a hard thing to get under control but it's very easy for it to spiral out of control. Here is how it works: If you have a balance of $5,000 at 18 % APR, it will take you twenty-six years to pay the balance in full if you make only the minimum payment. By the time you pay off the balance, you will have spent more than $12,000 for that original $5,000 debt. You will have lost more than $7,000. Oh man the things that I could do with an extra $7,000!
But wait it doesn't stop there.
What if you have a late-payment, it happens to all of us. That means added fees and penalties. A possible raise in interest rate-maybe on several cards, not just the one that you were late on. Credit card companies share late-payment information.
It might have been a good deal while you were out shopping, but it's not anymore after interest and possibly a late-fee. When you pay with plastic think what will this really cost me??....
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