hi..

the simple illustration provides the total idea of the difference between a person paying minimum amount with the incurred debt or not..

this can help a lot of debtors and make them realize how much they can save if they pay off the debt amounting more than the minimum payment required.

thanks..

Good find! Too bad credit card companies aren't asking for 4.5% minimum payments.

Currently most are at 2-3% minimum payments and with that schedule, its a 20-30 year repayment plan at just minimums

How paying the minimum drags your debt!
by bebiesean » Thu Mar 25, 2010 02:05:42 AM

Hey folks. I found this interesting graph of how paying only the minimum of the balance on your credit card drags the number of months you should be paying your debt.



The graph shows a bill of $5,000 with 15% interest rate and the minimum payments at 4.5%. It takes you 109 months to pay off that debt.

Doubling the payment will cut down the time to <13months> and will save you over $1400 in interest.

I hope you guys find this interesting. I did!

Hey folks. I found this interesting graph of how paying only the minimum of the balance on your credit card drags the number of months you should be paying your debt.

http://www.myjourneytomillions.com/wp-content/uploads/2009/09/HorrorofPayingMinimumPayments.png " alt="myjourneyto million.com"/>

The graph shows a bill of $5,000 with 15% interest rate and the minimum payments at 4.5%. It takes you 109 months to pay off that debt.

Doubling the payment will cut down the time to <13months> and will save you over $1400 in interest.

I hope you guys find this interesting. I did!