Credit Card Users - Do you have monthly fees?

If you don’t pay off your credit card every month you need to read this

Credit card minimum payments are for the banks benefit – definitely not yours.

The warnings required by law on the face of each credit card statement are quite shocking if you care to read them. If you incur credit card charges such as late payment fees or interest at any time, you should heed the warnings.

The minimum repayment offered is about 2.5% of the purchases for the current period. So with no interest, it should take 40 monthly payments to pay off the loan. To repeat that – it will take over 3 years to pay off. However, there are extra charges/interest to pay. The interest payable on the loan is about 20% per annum. So the balance owing on the loan only decreases by a small amount, when you make the minimum repayment.

You can expect to take 100 months at least to clear the debt – 8.3 years, if interest rates remain as low as they are now.

So heed the warning! Improve your financial management quite simply. Pay off the card in full – or don’t use it until you can!!

Why not use a debit card – it’s often free and there is no interest?


All the world’s a stage, and all the men and women are merely players William Shakespeare
A fool and his money are soon parted. What I want to know is how they got together in the first place Cyril Fletcher
My main problem is reconciling my gross habits with my net income Errol Flynn
All I ask is the chance to prove that money can't make me happy Spike Milligan
A very rich person should leave his kids enough to do anything but not enough to do nothing Warren Buffet
Next to being shot at and missed, nothing is quite as satisfying as an income tax refund F.J. Raymond
Those are my principles, and if you don't like them... well, I have others Groucho Marx

© 2018 Moneytax. All rights reserved. Disclaimer | Privacy

Site by PlannerWeb.