Re: not fer nuthin' but "paying more than the minimum" means next to nothing
02-23-2010 05:18 PM
One of the useful things that will happen with the Credit CARD Act (yes, there are a few!) is that every statement will have to display a table showing how long it will take you to pay off your balance if you only make minimum payments, and how much interest you will pay over the lifetime of the loan.
"Lifetime of the loan" --many of us don't think of credit card debt as a loan, but it most certainly is. You borrowed money from the CCC to buy something, and you have to pay it back, usually at interest rates that are way higher than typical installment loan rates.
You can pay it back the first month before the due date (or before the statement date, if you like to torture your FICO scores), or you can drag it out, paying interest and remaining beholden to the bank. I'm cheap, and I like to at least pretend I'm independent, so I'm a PIF'er.
I did notice on my February Chase statement that there was an area that showed the estimated time of pay off including interest. How convenient.
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