The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Articles
  • Books
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

Minimum Payments Now Really Equal Maximum Payments, in the Long-Run

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Credit Cards
Reading Time: 2 mins read
credit card minimum

How long have you been making the minimum payment on your credit card debt?

9
SHARES
144
VIEWS
Share on FacebookShare on Twitter

Learn How To Invest In The Stock Market w/Teri Ijeoma. Click Here to Enroll in the Trade and Travel Program Now. Learn More.

Paying so-called minimum payments now actually ends up costing you more – a lot more – over the long haul.

The math behind some of the calculations that determine your interest rate can be tricky. And I won’t get into all the complex, and sometimes mind-boggling formulas that are used to calculate your Annual Percentage Rate (APR).

But suffice to say that for every $1,000 you owe, if you paid a minimum of say 4%, you’d only be paying $40 a month.

With just $2,500 in debt on a card with an 18% interest rate, you’d spend 10 years paying it off and you’d pay more than $1,400 in finance charges on top of what you originally spent.

A Guaranteed Investment Return

Many charge cards carry very high interest rates of 18% to 21%, or more. If you carry large credit card balances, that’s a drain on your monthly finances.

At the very least, start doubling up on your payments in order to pay off those credit cards sooner, rather than later.

If you pay off a MasterCard that is charging you 21% interest, that’s the equivalent to earning a guaranteed 21% investment return – and you won’t find that kind of guarantee anywhere in the stock market.

But I Don’t Have the Money!

I know some of you may be saying: “I don’t have the money! If I had the money to pay three times my minimum balance – or even all of it, I would’ve done it by now!” Well, keep reading – particularly in Day 15 through Day 24 – for ideas about how you’re going to come up with the money to ultimately achieve Zero Debt status.

For now, to get you on track, I want you to write a check this day to pay more than the minimum due on one credit card that you owe. I don’t care if it’s a $5 check. Just pay extra money on any one bill right now.

It can be on a card you’ve already paid this month or an upcoming bill. But mail that check today! Excerpt from Zero Debt: The Ultimate Guide To Financial Freedom 2nd edition.

Tags: minimum paymentZero Debt: The Ultimate Guide to Financial Freedom 2nd Edition
Previous Post

I Already Paid My Student Loan But Records Show I Still Owe It – What Do I Do?

Next Post

The dfree Movement

Related Articles

Lynnette Khalfani-Cox
Credit Cards

Dealing with Financial Anxiety

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach
Credit Cards

The Split-Second Shopping Decision That Could Save You Hundreds of Dollars

by Lynnette Khalfani-Cox, The Money Coach
pay credit card balance in full
Covid-19

3 Items to Buy With a Credit Card During COVID-19

by Lynnette Khalfani-Cox, The Money Coach
coronavirus credit card debt
Covid-19

Coronavirus and Credit Card Debt: What Lenders Want You to Know and Do During COVID-19

by Lynnette Khalfani-Cox, The Money Coach
Rewards credit cards holiday spending strategy
Credit Cards

5 Strategies for Using Rewards Credit Cards When Holiday Shopping

by Guest Blogger
credit-card-benefits
Credit Cards

How to Negotiate a Lower Interest Rate on Your Credit Card

by Lynnette Khalfani-Cox, The Money Coach
maxed-out credit card
Credit Cards

The Most Maxed-Out Places in America

by Guest Blogger
credit-card-benefits
Credit Cards

4 Apps that Tap Into Your Credit Cards Hidden Benefits

by Lynnette Khalfani-Cox, The Money Coach
pay credit card balance in full
Credit Cards

Should I Pay My Credit Card Balance In Full Each Month?

by Lynnette Khalfani-Cox, The Money Coach
Next Post
dfree

The dfree Movement

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Articles
  • Books
  • Get Coaching
  • Contact Lynnette
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist