Avoid using credit cards. Why? see below, credit card companies charge you interest. When I saw this number I was shocked! the number came from my Citi Forward credit card, that's how much they've charged me just for keeping a balance. Keep in mind this balance was never really that high, the average was $3,000 dollars. I still have this balance but I'm hoping the picture below helps me pay it off faster:
That's correct, they charged me
$516 dollars, They basically added it to my balance. Haven't paid for it yet but that's still a lot of money. So learn from me and avoid using credit cards. Pay for everything with cash, now if I could only learn this lesson I could have saved $516 dollars.
HS
6 comments:
They didn't just charge you that. That is the total for the year. If you go back over your statements, you will see how much they charged you per month.
You don't even want to know how much we have been charged.
But at least you are becoming more aware of things.
True Mysti! it was charged every month but look at what it become for the year :(
HS
Well a picture is worth a thousand words. In this case I'll use the words anyway. The bank is the only one that benefits from consumers using credit cards and carrying balances. PERIOD. Putting a TV, for example, on a credit card might seem ok. But that $1000 charge will turn into about $3000 by the time the principal and interest are paid in full.
I agree Chris, but in this case the picture is worth $516 LOL
HS
Credit cards are just to much temptation for me and the monthtly interest they charge is obscene. Reading your post about having paid $516 in interest over the past year makes me shudder at how much I have paid over the years. Today I cleared my card completely but am still unsure about cancelling it, the reason is because I travel overseas and Debt cards don't really work so well oversea's (as I have learned through experence).
I don't know if you've tried it already but there is a nifty Debt Reduction tool on Excel here: http://www.vertex42.com/Calculators/debt-reduction-calculator.html
It is awesome and lets you know how much you'll pay in interest depending on different ways of paying down balances. Take a look, enter your numbers, and freak out a bit =)
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