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Credit Card Debt: Why You Should Pay It Off Quickly When Possible

Getting out of debt can be hard, but doing so can make a big difference. Becoming aware of spending and borrowing habits will help you make changes and pay off debt sooner. Apart from the relief you will gain from being debt free, you will also be paying less over time for the goods and gifts you purchase.

Not convinced?

Below is a minimum payment total cost example:

A $2,000 credit card balance with 19.8% APR and a minimum payment 2.5% of balance or $20, whichever is higher will take you almost 14.5 years to repay and will cost an additional $2,848 in interest.

Here are a couple more benefits to paying down credit card (or any) debt early:

  • Eliminate a payment – each time you get rid of a payment, you will have extra money to use (or save) every month.
  • Invest Savings – When you save on interest paying off your debts early, you can turn around and invest the money to earn your own interest. Then instead of paying interest to someone else for that money, you can have someone pay you interest for it.

Need more financial advice? Check out BALANCE, a free service online or toll free at 888.456.2227.

Our team is happy to answer any questions you may have about BALANCE and how it can help you become financially fit.

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