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Friday, April 9, 2010

Life sentence plus 1700 years


A friend of mine just got a credit card statement. He has a balance of $2,175.57. The minimum payment due is $22.92

The helpful statement points out that if he makes only the minimum payment each month, and does not make any new purchases, his balance will be down to zero in just 1,757 years. If he lives long enough, at $22.92 per month, he would pay a total of about $346,650 -- about 160 times the current balance!

If, however, he pays $73 per month, he'll be paid off in just three years, and will save $344,022 over the amount that would be paid in 1,757 years.

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2 comments:

  1. I like the new layout. I started getting little statements like that on my credit cards a few weeks ago. It's shocking. No wonder they fought Congress on those disclosures.

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  2. I have three credit cards with a total balance of nearly $5,000. I decided to stop using them and to start paying them off. I started with the highest-interest card first. I will then work my way down to the low-interest ones.

    After I've finished paying them all off, I plan to write a book detailing tactics and tricks I used to do it.

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