When I received my first credit card bill in college, I was stoked to see that I only had to pay $15.00 when I actually spent $120. "This is awsome," I thought. "I'm going to use this credit card for everything!"
Now I know better. But apparently some people don't. That's why my latest credit card statement came with a nifty chart about what happens if you only pay the minimum payment. I'm certain this wasn't Visa's idea. I wish the government had been in the business of bailing out morons back when I was one.
Here's what they taught me:
If you make no additional charges using this card and each month you pay only the minimum, you will pay off the balance in about 19 years and you will end up paying an estimated total of $6,000+.
OR
If you make no additional charges using this card and each month you pay $122.77, you will pay off the balance in about 36 months. And you will end up paying an estimated total of $4,000+.
And then this is the best part. Right under the part about paying over $4,000, they have a little note in parenthesis that says:
(Savings = $2,000+)
Hurray! I just SAVED $2,000!! Now what should we do with all that savings? We could go on a trip! We could go on shopping spree! We could finally afford HBO!
Guess what, Visa. I graduated from college. I know that paying anything less than the total amount due is stupid. And if I can't afford it, I shouldn't have swiped it.
Hey, that's a good line. I gotta tell my buddy Dave Ramsey about that one.
2 comments:
Dave Ramsey!!! That's all I wanted to say. :)
He is my really my buddy! I interviewed him for a story. So I was basically just name dropping :)
P.S. I thought about you guys on Monday, Jessi, since it was the "ides of March."
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