Beware of Falling Minimum Payments
?>
Download eBooks and Software
 Peoplesearchaffiliates.com: #1 For Over 2 Years
Make Money Today! Most Lucrative People Search Products On CB For 2+ Years In Reverse Phone - Email Search - Vital Records - Family History. All New Aff Area W/ppc Landing Pages, Keyword Lists, Seo Tools, & More At www.peoplesearchaffiliates.com
Self-esteem Elevation For Children Coaching Certification
From Renowned Life-optimization Coach Joe Rubino: High-ticket Product With Proven Copy Perfect For Any Niche That Relates To Children, Parenting, And Family. Certification Teaches How To Make A Profound Impact On The Happiness And Future Of Children.
Urban Survival:survive Any Disaster Without Leaving Home
Urban Survival: Easy Shortcuts To Prepare Your Family For Surviving Disasters Without Leaving The City
Articles > FamilyBeware of Falling Minimum Payments
by: James H. Dimmitt
If you opened a credit card statement recently and were pleasantly surprised to find that your minimum payment due was lowered, don’t be so quick to “jump for joy”. What may appear as a small boost to your monthly budget is actually the rock that can weigh you down in debt for a lifetime.
More and more credit card companies are moving to requiring a minimum payment of 2% of your total outstanding balance. Consumer Action, a consumer advocacy group out of San Francisco, found that the number of card companies with a 2% minimum payment reached 53%, up from 43% just a year ago.
Some creditors have even gone so far as to call this a “consumer friendly” move claiming it will assist consumers faced with today’s economic woes. In reality, a lower minimum payment causes you to take longer to pay off your debt to the creditor while winding up paying them more money in interest payments.
For example, let’s say you have a credit card debt of $2500.00 @18% annual percentage rate (APR). Your monthly minimum payment based on a 2.5% pay back rate would be $62.50 per month. Oh and by the way, here’s what the credit card company really doesn’t want you to know - it will take you 20 YEARS to pay off your $2500.00 balance paying the minimum monthly due. And you will have paid the credit card company $3,365.51 in interest!
Now lets look at the same example using the rate of 2% minimum monthly payment. Your monthly payment drops to just $50.00 a month. You might be tempted to think “wow, I’ve got an extra $12.50 a month to play with, yippeee!”. Not so fast! That lower minimum payment now means it will take you 34.5 YEARS to pay off your balance of $2500.00 and you’ll wind up paying $6,430.93 in interest!
Consumer Action also reports that many credit card companies are imposing higher late payment fees and “more than a third of card issuers said they will raise existing cardholders' rates because of poor credit histories -- with other creditors -- even if the consumer has made regular, timely payments with that issuer”.
My advice is to watch your use of credit carefully, always pay more than the minimum monthly due, and be sure to read the fine print on any credit card offers or changes to your existing accounts.
?>
News on Family
Family Child Care Course by CCEI Provides General Training for Family Care Providers
DULUTH, Ga., May 25, 2012 /PRNewswire/ --Â ChildCare Education Institute (CCEI), an IACET approved, nationally accredited, online training institution dedicated exclusively to the child care and education ... Jaunt.ca and SavvyMom.ca Partner to Launch Jaunt Family
Jaunt Family offers carefully curated family getaways that will create lasting memories for Canadian familiesTORONTO, May 24, 2012 /CNW/ - Jaunt.ca and SavvyMom Media (SavvyMom.ca) announce the launch ... England star's family snub Euros over racism fears
England star Alex Oxlade-Chamberlain's family have become the latest to decide against supporting their son at Euro 2012, amid fears about racism in tournament co-hosts Ukraine. The future of family business in Canada
The future of family business in Canada Family life of murdered girl was 'normal': sister
A woman who allegedly witnessed her parents murdering her sister told a court Thursday that she kept the killing secret for seven years because love for her family made her think their lifestyle was "normal".
|
