2005 Year in Review

Getting Your Credit Card Debt Under Control

Are you still dealing with credit card debt from the holidays? If you spent more on gifts than you intended, you’re not alone. Nearly one-third of adults say they spend more than they should during the holidays.

If you used your credit card a little too freely during the holidays, strive to pay the balance as quickly as possible.

After the holidays, some credit card companies offer to let you skip a payment or two. Or, the company may even reduce your minimum payment. Don’t be tempted to take these offers because you’ll pay more in the long run through interest costs.

Paying just the minimum amount on the credit card balance each month is dangerous to your financial health, too. You might be surprised how long it will take to pay off your bill. For example, if you have a credit card balance of $1,825 at 18 percent interest and pay only the minimum monthly payment of $28, it will take 21 years to pay off the balance and cost you more than $5,00 in interest. And, that’s with no additional charges on the card over those 21 years.

To see just how much the interest cost affects your debt, use Extension’s on-line credit card calculators at Click Here. The tools also allow you to figure out how much you need to pay each month in order to pay off you balance in a certain amount of time.

by  Editor, theCity1.com
February 4, 2005