Improve Finance | Financial Help | Finance Tips | Finance Directory | Every Dollar Count in Ridding Off your Credit Card Debt

\n \n \n \n

\n Articles

\n \n \n \n \n

\n \n \n \n \n \n \n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n \n \n \n \n

\n \n \n First-time Buyers - Why you Should Spend... \n \n \n
\n \n Almost all first-time home buyers find that their income will only allow them to qualify for a fixed... \n \n
\n \n [ \n \n More \n ] \n \n

\n \n \n \n \n

\n \n \n Cash Rebate Credit Cards - Benefits and ... \n \n \n
\n \n The cash rebate credit cards are very helpful to the people who make big credit card purchases. The ... \n \n
\n \n [ \n \n More \n ] \n \n

\n \n \n \n \n

\n \n \n Hotel Credit Cards - Benefits and Detail... \n \n \n
\n \n The benefits of hotel credit cards depend on the card member's future stay with the same hotel. ... \n \n
\n \n [ \n \n More \n ] \n \n

\n RSS

\n \n \n $\"Add$
\n $\"Subscribe$
\n $\"Add$
\n $\"Add$
\n $\"Add$
\n $\"Add$
\n $\"Subscribe$
\n $\"Add$
\n $\"Add$
\n $\"Subscribe$
\n $\"Subscribe$
\n $\"Add$
\n $\"Add$
\n $\"Add$
\n $\"Add$
\n $\"Add$ \n \n \n

\n \n \n \n \n \n \n

\n Every Dollar Count in Ridding Off your Credit Card Debt

\n \n $\"Print\"$ \n

\n \n $\"E-mail\"$ \n

\n \n \n \n \n \n

\n \n \n

Have you ever wonder how much of your credit card's monthly payment go to the principal of your credit card debt? Many people don't really care about it and continue enjoying the benefit of payment just the minimum amount due in their credit card statement. That's why so many people are in credit card debt and find themselves difficult to get rid of it. If you are in this situation, this article will tell why this happen and every extra dollar you put into your monthly payment speed up your credit card debt payment.

How Long You Will Pay Off Your Debt With Minimum Payment?

Most credit card companies set a minimum monthly payment requirement as 2% of the credit card balance stated in your credit card statement or $10 which ever is higher. You may think that the credit card companies are so kind and reduce your debt burden by enable you to pay just a fraction of your debt each month. Do you how long your will take to payment off your credit card debt and how much interest will the credit card company earn if you utilize the feature?

Let us make a clearer picture by using an example. A person named John owes $10,000 credit card debt with 18% annual interest. He just pays the minimum amount due, which are 2% or $10 every time he receives his credit card payment.

By using the figures, John just pays the minimum amount only as required in his credit card agreement. It will take him 57.5 years just to pay off the $10,000 debt, provided he not added new debt into his card. And he is paying close to $29,000 of interest just to pay off his $10,000 credit card debt. You see the picture?

What If You Pay Slightly More Than Minimum?

Using the same example, let say John makes some changes by adding $1 extra on his minimum payment and remain $11 if the monthly payment less than that. It will take him 51 years and paying $27,000 interest in order to settle his $10,000 debt. Here is summary of number of years and total interest paid for minimum payment + $0 to $10.

Extra dollar of $0; No Of Years: 57.5 years; Total Interest: $29,000

Extra dollar of $1; No Of Years: 51.0 years; Total Interest: $27,000

Extra dollar of $2; No Of Years: 56.5 years; Total Interest: $25,800

Extra dollar of $3; No Of Years: 42.2 years; Total Interest: $24,700

Extra dollar of $4; No Of Years: 39.5 years; Total Interest: $23,600

Extra dollar of $5; No Of Years: 37.0 years; Total Interest: $22,700

Extra dollar of $6; No Of Years: 34.8 years; Total Interest: $22,000

Extra dollar of $7; No Of Years: 33.3 years; Total Interest: $21,100

Extra dollar of $8; No Of Years: 31.5 years; Total Interest: $20.500

Extra dollar of $9; No Of Years: 30.0 years; Total Interest: $19800

Extra dollar of $10; No Of Years: 28.8 years; Total Interest: $19200

By paying extra $10 toward you minimum payment, you will save about 29 years and close to $10,000 of interest. So if you could pay an extra of $50 top of your minimum payment, you could settle you debt in 12 years and by just paying $9250 of interest instead of $29,000. Did you see the impact of extra dollar toward clearing credit card debt?

If you want to clear your credit card debt even faster than above method and you can afford the first minimum payment, as the case study: $200 to be paid each month until your credit card balance goes to zero. You will complete your debt payment within 8 years and paying only $8600 of interest. This is one of acceleration method that can speed your credit card debt payment by just remaining your first initial minimum payment for every month until your debt goes to zero.

Summary

Getting out of credit card debt is time consuming and costly. But if you could put extra effort by just adding extra dollars toward your debt payment, you could become debt free faster and save in a good amount of interest paid to your debt.

$\"Reddit!\"$ $\"Del.icio.us!\"$ $\"Google!\"$ $\"Live!\"$ $\"Facebook!\"$ $\"Slashdot!\"$ $\"Netscape!\"$ $\"Technorati!\"$ $\"StumbleUpon!\"$ $\"Newsvine!\"$ $\"Furl!\"$ $\"Yahoo!\"$ $\"Smarking!\"$ $\"Ma.gnolia!\"$ $\"Free$

\n \n \n \n \n \n \n \n \n \n

\n \n < Prev \n	\n \n	\n \n Next > \n

\n \n [ Back ]\n

\n \n \n

\n Tag Clouds

\n ability able abroad absolutely accept access according account accounts achieve action actual actually added adding additional address advance advances advantage advice afford affordable aged agencies agency agent agents ages agree agreement ahead airline airlines alaska allow allowing allows amazed american amounts anniversary annual annum answer answered anybody apparel applicant applicants application applied apply applying appreciate approval approved approximately area arrears arthritis asset associated assured attack attention attractive automatically avail available availed avenue average avoid aware away balance balances bank banking bankruptcy banks bargain based basic basis beatles begin beginning behalf behavior believe beneficial benefit benefits best better bigger billing bills bonus borders borrow borrowed borrower borrowers borrowing brand break breast bring budget build building bull burden bureau business businesses buying cable calculated called cancer can’t capability capital card cards care carefully carry cars case cases cash cashback catch categories category cause caused certain certificate certificates chance chances change changed charge charged charges chart charts chase cheap cheaper check checks children choice choices choose choosing christian circumstances citi claim claims clear clearer clearly close closing clothes clothing coffee collateral colon come comes comfort comfortable coming commercial commission common companies companion company comparatively compare compared comparing comparison competitive complaints complete component compound comprehensive concentrate concern concerns conditions confidence consider considered considering consolidate consolidation consultant consultants consumer consumers contact contract contracted contrary contribute control copy correctly cost costco costs counseling counselor countries country couple course court cover coverage covered covers create credit creditor creditors crisis criteria critical current customer customers cutting cycles damage data date dates days deal dealing deals death debit debt debtor debts decide decided deciding decision decisions decreased deductible default defaults definitely dental depending depends deposit deposited desirable details determine devices didn difference different difficult difficulties dining direction directly discipline discount discover disease documents does doesn doing dollar dollars donation don’t double doubt downand dream dreams drive dues duetto duration earlier early earn earned easier easiest easily easy eating economy education effect effective effectively effort eligible emotions employees enable energy enroll entertainment entry equal equity essential establish establishments estimated evaluation event everyday exactly example excellent execute existing expected expenses experience expert experts expire explain express extensive extra extremely fact factor factoring factors facts fail failure fall family fast faster favour fear feature features feel feeling fees feet figures filed final finally finance finances financial financially financing finding fine firstly fixed flexible flower focus follow followed following food foreclosure forex forget form fraud frecuenta free freedom frequent frequently fuel fund funding funds furthermore future gains general generally gets getting gift given gives goals goes going golden gone good goods government grace grave great greater greatly grocery ground group grow guarantee guide hand handle happen hard having hawaiian head health heart heavy heloc help helping helps hhonors hidden high higher highly hilton hint history hold holder holders holiday home homeowners homes hope hotel hotels hours house household houses huge hundreds idea ideas ignore illness imagine impact important improve incentives include includes including income increase increased increases increasing independent individual industry information initial installments instance instant instantly instead institutions insurance insured insurer internet intro introductory inventory investing investment investors invoice involved issue issuer issues issuing items it’s john just keeping kind know knowing knowledge known knows large larger late later ldquo leading learn leave left legal legitimate lender lenders lending lennon lesser lets level leverage liability lies life like likely limit limited limits line lines link list listed little live living load loan loans local locations long longer look looking lose losing loss losses lots love lower lsquo lung main maintain maintained major make makes making malignant manage management managers market markets master mastercard matter maximum maybe mdash meals mean means meant medical meet meeting member members membership merchandise merchant merchants method methods mile miles million mind minimum ministries minutes miss mistake momentum money monitor month monthly months mortgage mortgages movement moving multi multiple named national nearly necessary need needed needs negotiate neighborhood news normal normally northwest novice nowadays number numbers objective obtain obviously odds offer offered offering offers office older online open opportunity option options order outcome overall overnight overstock owner package paid park participating particular partners past patient patients paul paying payment payments pays people percent percentage perfect period periods person personal perspective phone pick picture place places placing plan planning plans platinum plus point points policies policy poor popular population portfolio position positive possibility possible possibly potential pound power predict predicting preferred premium prepaid prepared present pretty previous price prices prints priority private privileges prize probability probably problem problems process products professional profit profits program programs proper property protection provide provided provides providing psychological purchase purchased purchases purchasing purposes purse qualified qualify quality questions quick quicker quickly quite quot quote quotes raise range ranging rate rated rates rating rdquo read ready real realize really reasonable rebate rebates rebuild receivable receive recommendable recommended record records recover redeem reduce reduced refinancing regarding regardless registered regular related relationship relief relying remaining remember remove removed rent repaid repair repairs repay repaying repayment repayments report reports reputable request require required requirement requires research resistance resolve resolving responsible restaurants restrictions result results retail return review reward rewards rheumatism right rights rise rising risk risks risky round rsquo rule rules safe said save saves saving savings schemes scientific score search second section secure secured security seek select self sell seller selling sense service services settle settlement setup share shop shopping short shorter sign signature significant similarly simple simply single site sites situation slight slightly small smaller smallest smart solution solutions sony soon sound sources special specially specific spend spending spent sports starbucks start started starting stated

\n Latest News

\n Articles

\n RSS

\n Tag Clouds