- It took Jenny 15-20 years to just cut her balance in half!
- That interest rate was a killer! At 15 years she owed $1,330.01 and at 20 she owed $1,077.69. She will finally reach her half point right in the middle; and still have over 20 years to go!
- As said before, Jenny paid a total of $12,483.63.
- That's over eight times the amount she started with!
- She paid $9,983.63 just in interest!
- That's roughly 4 times what she originally needed to pay and almost half of her ending total!
- During her 45th-47th years, her payments will finally be going more to her principal than to her interest.
- As the balance gets lower, so does interest!
- After 25 years of paying minimum, she will still owe $873.23.
- Keep in mind, she still has about 20 years to go before she pays it off! Just over eight hundred may seem low now, but it's still climbing!
- At the age of 65, Jenny will have paid off her account, spending roughly $10,000 on interest.
- First things first; if Jenny hadn't charged to the max, she wouldn't have been in this situation.
- If Jenny had paid more than minimum each month, she wouldn't have payed nearly as much in an even lesser amount of time.
- She could have payed it in full right from the beginning and she wouldn't have had to worry about the large interest amount.
- If Jenny was employed; she could have set aside a certain amount of money each month, just for paying off the credit card. It wouldn't be as fast as a better option, but it's much better than only paying minimum each month.
- Jenny also could have split up the $2,500 owe into several groupings, instead of monthly payments for 47 years.
- Example: split into five payments of $500. Sure, there would still be interest, but not nearly as much.
What do you think? Should Jenny have made better, wiser choices?
No comments:
Post a Comment