Posted by CreditCardGuru
I find it completely shocking that the large majority of Americans with credit card debt are paying double digit interest!
Do they have any ideas how harmful this is to them? How much compound interest is going to kick their @ss? I’ll give you an example. Let’s say you have a balance of $5,000 for 3 years, and you’re paying 18% on that. That ends up being $3,215.16 in interest alone!
Now let’s take that same amount and put it on a low interest rate credit card. So $5,000 for 3 years, but we’ll change the APR to 9%. You will have paid $1,475.15 in interest.
$3,215.16 or $1,475.15… which one would YOU choose?
Although no one admits it, the large majority of the population chooses the first. Many people think they have no choice, but that’s because they use only the most popular credit cards. Huge companies like Citi, Bank of America, Chase, HSBC, and others spend billions on advertising every year. Is it any wonder why they often have to charge you double digit interest?
Tags: APR, balance transfer offers, credit cards, interest rates, low interest rate credit cards, prime rate credit cards
Posted in General | Comments (1)
September 28th, 2008 at 1:47 pm
great article. thank you for sharing