Surreal Paragraphs Found in Credit Card Bills

in Credit Cards, Debt Reduction

My current credit card balance is quite large this month due to a bunch of specific previously planned expenses (and a couple that we hadn’t planned). ¬†The bill will be paid on time, so there is not too much worry about starting a cycle of credit card interest charges (at least that is my plan, unless I forget to pay on time).

Having wandered through the wonderland of spending, I tripped across the following sentence:

At your current rate of interesting, if you make only your minimum payment by its due date each month, it will take approximately 22 year(s) and 2 month(s) to repay the account balance shown on this statement.

Holy Calendars Batman!!!! 22 years? Aye Carumba, that is an astounding time frame. So my estimation if we were making this same payment that the effective yearly rate is about 22% and I’d end up paying in total about 500% of the initial amount on the credit line once all payments are made, pretty cool eh?

This is atrocious, and makes me wonder how folks can do this? I have a line of credit that charges me currently 4% interest and if I was a bad bank customer I guess they might charge me 8%, but the Credit Card company can charge 22% (or so)? Wow, I guess I should start my own credit card company, if I want to get rich? Yes, I know that is unlikely or illegal or both.

The amazing things you can read on your credit card statement.


  • B H August 1, 2015, 10:27 AM

    I remember seeing one statement a couple of years ago that said it would be something like 72 years to pay it back at the minimum. I admired their confidence in my longitivtiy! Perhaps that’s the real fountain of youth … pay your cards off at the minimum rate and they will assure you of staying alive for many many more years. Hehe.

  • Bret @ Hope to Prosper October 2, 2011, 1:24 PM

    The minimum payment warning was part of the new CARD Act that passed in the U.S. to reform the credit card industry. They did it because some people didn’t realize it would take decades to pay off their cards by making the minimum payment.

    I didn’t realize they would use it in Canada.

  • Traciatim September 26, 2011, 5:26 AM

    I think if you look at the question from the opposite direction you;ll find the answer to why credit card rates are so high.

    If you had a million bucks and you want to earn 6% per year on your money by lending it to people. You know somewhere between 10%-15% of those people will not pay you back. What interest rate do you have to charge to earn 6% on your money taking in to account your losses?

    • bigcajunman September 26, 2011, 9:35 AM

      Agreed, just a surreal time frame to see on a credit card bill. My first mortgage didn’t have that term!


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