RSS FeedsA Simple Way to Begin Eliminating Your Credit Card Debt Now! - by Tony Mase
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A Simple Way to Begin Eliminating Your Credit Card Debt Now!
- by Tony Mase
© Tony Mase – All Rights Reserved
http://www.constructivescience.com
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Recently, a friend of mine who, like many, is easily
confused when it comes to financial matters, asked me to
take a look at her monthly statement for a credit card she’s
been trying hard to pay off, but feels like she isn’t
getting anywhere.
I gladly took a look at her credit card statement and the
very first thing I noticed, which almost floored me, is the
interest rate she’s paying…
29.99%!
That’s right…
29.99%…
Wow!
I don’t know where I’ve been (obviously not looking at
credit card statements :-)), but I thought this was illegal.
Her credit card balance is $5,141.06.
If she doesn’t charge anything else on this credit card,
which she hasn’t been, and if she continues to make the
minimum required monthly payment, as she has been, based on
the way her bank calculates her minimum required monthly
payment…
It’ll take her 339 months to pay off her current credit card
balance of $5,141.06 and she’ll pay a total of $12,345.65 in
interest.
In other words…
If she continues doing what she’s been doing…
It’ll take her 28.25 years and cost her $17,486.71 to pay
off her $5,141.06 credit card balance.
No wonder she feels like she isn’t getting anywhere…
She really isn’t!
So…
What should she do?
Well…
There are a number of things she could do.
However…
One of the simplest things she could do would be to continue
making the same minimum required monthly payment she’ll be
making this month, every month from now on.
Why?
Simple…
Because she’s already in the habit of making a monthly
payment of at least this much on her credit card.
You see…
Most banks and credit card companies figure the minimum
required monthly payment based on a percentage of the credit
card balance due or a specific fixed dollar amount,
whichever amount is higher.
Therefore…
Generally, the minimum required monthly payment goes down as
the credit card balance owed goes down until the minimum
required monthly payment gets down to the minimum required
dollar amount.
In her case…
Her bank’s minimum required monthly payment is 3.5% of her
credit card balance or $10.00, whichever amount is higher.
This month her minimum required monthly payment is $184.93
of which $134.87 is interest, with only $50.06 applied to
the balance.
If she were to do absolutely nothing else but make this
$184.93 payment every month from now on…
She’d pay off this credit card in 49 months instead of 339
months and she’d pay $3,749.46 in interest instead of
$12,345.65 in interest, saving $8,596.19 in interest
charges!
Big difference, isn’t it?
Now…
If she really wants to go for it…
She could increase the amount of her “new” self-imposed
minimum required monthly payment.
For example…
If she were to start paying an additional $15.07 a month for
a total of $200.00 a month…
She’d pay off this credit card in 42 months instead of 339
months and she’d pay $3,191.78 in interest instead of
$12,345.65 in interest, saving $9,153.87 in interest
charges.
If she were to start paying an additional $40.07 a month for
a total of $225.00 a month…
She’d pay off this credit card in 35 months instead of 339
months and she’d pay $2,574.37 in interest instead of
$12,345.65 in interest, saving $9,771.28 in interest
charges.
If she were to start paying an additional $65.07 a month for
a total of $250.00 a month…
She’d pay off this credit card in 30 months instead of 339
months and she’d pay $2,165.81 in interest instead of
$12,345.65 in interest, saving $10,179.84 in interest
charges.
If she were to start paying an additional $90.07 a month for
a total of $275.00 a month…
She’d pay off this credit card in 26 months instead of 339
months and she’d pay $1,874.29 in interest instead of
$12,345.65 in interest, saving $10,471.36 in interest
charges.
If she were to start paying an additional $115.07 a month
for a total of $300.00 a month…
She’d pay off this credit card in 23 months instead of 339
months and she’d pay $1,654.79 in interest instead of
$12,345.65 in interest, saving $10,690.86 in interest
charges.
And so on.
Now…
If she really, really wants to go for it…
She could double the amount of her “new” self-imposed
minimum required monthly payment.
If she were to start paying $369.86 a month instead of
$184.93 a month…
She’d pay off this credit card in 18 months instead of 339
months and she’d pay $1,254.35 in interest instead of
$12,345.65 in interest, saving $11,091.30 in interest
charges.
Huge difference, isn’t it?
As I said above, there are a number of things she could do,
but this is one of the simplest and it’s something she can
start doing right now to begin eliminating her credit card
debt…
And…
So can you! :-)
If all you do is stop charging on your credit card and
continue making the same minimum required monthly payment
you’ll be making on your credit card this month, every month
from now on, you’ll make significant progress towards
totally eliminating your credit card debt once and for all.
——-
Tony Mase is a serious student of the works of Wallace D.
Wattles and the publisher of “The Science of Abundant Life”
ebook by Wallace D. Wattles…
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“The Science of Abundant Life” by Wallace D. Wattles
“The Science of Getting Rich” by Wallace D. Wattles together
with Wallace D. Wattles’ “The Science of Being Well”, “The
Science of Being Great”, “How to Promote Yourself”, “The New
Science of Living and Healing” and “Hell-fire Harrison”.
Click Here => http://www.thescienceofabundantlife.com
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