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Too Much Credit
additional charges during that 33 years. The $5,000 will cost over $10,500 in interest on top of the $5,000 you originally spent. By paying only the minimum payment every month, you are actually paying the very maximum amount for your purchase.
Go to http://www.bankrate.com/brm/calc/MinPayment.asp if you would like to calculate for yourself what it will take to pay off your current card balances.
What should you do?
1. Search for anywhere in your spending that you can make cutbacks. Stop the spending habit now by packing your own lunch, buying lower-priced gas, shopping for bargain sales at the thrift store. Any additional money you can apply toward your monthly payments will pay big dividends.
2. You might take on odd jobs, have a garage sale, baby sit, cancel subscriptions or memberships, and use this money toward paying your credit card bills.
3. An important step toward eliminating debt is to stop adding new debt. If you are someone who shops to cheer yourself up, find new ways to feel better. Try reading a good book, going for a walk, or chatting with a friend over coffee. There are ways to feel better without spending money.
Credit Increase Offers
Sometimes debt gets put to good use; it’s how we buy a home, go to college, or buy a car. So why is it so bad? Unfortunately, most Americans would rather spend than save. Surveys done by the Federal Government show that 20% of Americans have no retirement savings of any kind, and 76% believe most people their age will face financial trouble when they retire, but only 31% of Americans think they will personally face financial trouble. It may be time for a reality check.