Money Mistake # 1- Paying Only The Minimum On Your Credit Card
Are you making the same mistake that I did ? If I made the $50 minimum payment on a $2,500 credit card bill (at 18% interest), it’d take me 34 years to get out of debts !! You see it ?! And I’d have paid $6,430 in interest, about my twice original charge !
After realizing that most of my payments went to interest, while the principal went down by only $3 to $5 a month, I began to pay a little more than the minimum balance, the principal started to go down steadily.
My advice to you — pay as much as you can and always more than the minimum. And don’t charge another thing until that debt is paid off.
It’s also wise to look into transfering your balance to a credit card with a lower rate.
It´s incredible how good you can explain the problem. It´s not only true for people living in the USA. I am french and has lived in Germany. I made so much such credit card debts. It was horrible, I could´nt come out of this dilemna. I suscribed new debt cards to pay the other.
But I think I don´t have to explain you how it works in the head of a “debt person”.
I hope you can understand what I meant, my english skills aren´t so good anymore
Laura Bretagne