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.