Think about it.
Credit card companies make nothing off people that pay off their bill in full and fly on free points. But they make a fortune of people up to their eyeballs in debt paying 19.99% on the balances they carry.
Not convinced? Have you ever noticed how your credit card statement encourages you to just make the minimum payment? At the bottom of my statement it’s clear they are okay with me just paying the minimum by the payment due date.
Why aren’t they yelling at me about paying it in full on my statement like my mum yelled at me for not eating liver?
They send us teaser offers to transfer our balances from other credit cards with a lower rate. But when the low rate ends 6 months later, so do our hopes of paying off that debt.
They send offers to increase our borrowing limit, when most people can barely manage what they have right now.
They call us and offer us balance protection insurance for a few bucks a month. But, in my experience, they try to find a way to avoid paying it out when you need it.
I’m convinced credit card companies don’t want us debt free, they want us exactly where it makes them the most money: In debt, paying interest.
According to the Financial Consumer Agency of Canada’s credit card debt repayment calculator. Carrying a balance by just making minimum payments is VERY expensive. If you are balance is just $10,000 right now, just making the minium payments at 19.99% monthly will take you 25 years and 3 months to pay it off.
Your total cost? Are you sitting down? $22,226.88. If you aren’t paying more than the minimum monthly, things are not “okay”. They are very far from “okay”. Get help.
Drowning in credit card debt? Take control of your finances again and visit us now online at totaldebtfreedom.ca to get a quote to see how much you can save.
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