As a general rule, interest rates for the unpaid portion of your credit card balance are very high. When you’re struggling financially, it’s tempting to only make the minimum payment on your credit card, but doing so will only worsen your situation. You’ll end up paying a lot of money that’s mostly applied towards the interest you owe, and barely makes a dent in the outstanding principal balance of your loan.
This credit card statement shows how dangerous the minimum payment can be. This statement has a balance of $7,739.26 and if you made the minimum payment you would pay a total of $21,849 over the next 20 years.
New Balance $7,878.81
Minimum Payment Due $7,878.81
Payment Due Date $7,878.81
Late Payment Warning:
If we do not receive your minimum payment by the dates listed above, you may have to pay a late fee of up to $33.00
|If you make no additional charges using this card and each month you pay||You will pay off the balance shown on this statement in about||And you will end up paying on estimated total of|
|Only the minimum payment||20 years $21,849||$21,849 $21,849|
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