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PAY OFF THAT CREDIT CARD
A small thread about the damage that out of control credit card can do!
Lessons I have learned....
[THREAD
]
A small thread about the damage that out of control credit card can do!
Lessons I have learned....
[THREAD
]
Some years ago when I was at University I was convinced by my friendly bank
To get a credit card...
I was a good boy at university though and didnt use it
To get a credit card...
I was a good boy at university though and didnt use it
When I moved into my own place I decided I needed a new TV and didn't have the finances so thought....
...I'll put it on the credit card
...I'll pay it off next month...
...I'll put it on the credit card
...I'll pay it off next month...
It wasn't just a TV either, there was a holiday 
a sofa 
a new bed 
Yes I always paid off more than the minimum payment but never quite paid it off in full
a sofa a new bed Yes I always paid off more than the minimum payment but never quite paid it off in full
Move on a few years and I am sat there with £5,000 in balance at an interest rate of 19.9% APR
So lets look at how this works financially
The first month's interest on the £5,000 is £83.56. The minimum repayment is £152.51 (3%)
So lets look at how this works financially
The first month's interest on the £5,000 is £83.56. The minimum repayment is £152.51 (3%)
So the balance at the start of month 2 is £4,931.05
Month 2 interest is £82.41 and month 2 repayment is £150.40
Month 3 balance is therefore £4,863.06....and so on
Month 2 interest is £82.41 and month 2 repayment is £150.40
Month 3 balance is therefore £4,863.06....and so on
I set up a spreadsheet at this point and after 300 months (25 years) the balance is still £77.61
So we have a CLEAR message here:
Don't copy my mistake
Pay it off if you have one
Be CAREFUL with how you use credit
Ask yourself if the purchase is really worth it
So we have a CLEAR message here:
Don't copy my mistakePay it off if you have oneBe CAREFUL with how you use creditAsk yourself if the purchase is really worth it
