TIP OF THE MONTH - July 2007
NEVER ENDING CREDIT CARD DEBT
Unfortunately, if you are in the habit of making minimum payments on your credit card bills, it’s almost impossible to ever get out of debt. Assuming you pay the minimum 2% balance on the outstanding debt and the credit card company has 17% annual interest rate, here would be the result:
| Credit Card Balances | Total Time to Pay Off Debt | Total Cost |
| $1,000 | 17 Years and 3 Months | $2,590.25 |
| $2,500 | 30 Years and 3 Months | $7,733.49 |
| $5,000 | 40 Years and 2 Months | $16,305.34 |
We suggest that if you get into the credit card debt syndrome, recognize that you have a problem that is out of control. Then visit us. We’ll help you prepare a reasonable budget, prioritize the payment of your debts, try to negotiate reasonable bill-paying options with your creditors, and establish an overall debt repayment and financial plan to help you get your financial life back in order.