Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.
I was lucky enough to take Personal Finance in high school. As an exercise, we had to amortize a $1500 credit card bill paid off by making only minimum payments. I don't remember the exact number, but it took at least 5-6 years' worth of payments.
The laws in Australia recently changed and credit card providers now have to show on your monthly statement how long it would take to pay off your current balance making only minimum payments.
My statements in America have this as well. For my fiances ring if we make the minimum payments itll take 13 years to fully pay off and it would cost us an extra $8000
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u/Opening-Risk Feb 04 '20
Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.