Save 2,000 $ with your credit card

Do you have debts with your credit cards? Have you begun to use the card recently and has increased your debt without realizing it? Do you always shop with your credit card and pay the monthly minimum? Think you could make better use of your credit cards?

If you answered "yes" to either question, I have to give you a bad and good news. The bad news is that "you have a problem," the good news is that " It is possible to manage debt and go slowly reducing it if we develop an appropriate plan . "

First, we must be aware that the money spent on credit is not free and that the interest we pay for using that credit is very high (around 20% APR). Second, you have to write to the head as follows: "NO COSTS OR BUY SOMETHING IF YOU DO NOT HAVE MONEY FOR IT" (the credit card is not your money).

Just use your credit card if you pay the total month-end.

I recently asked a friend who had three credit cards with a debit balance of  2,000 $ each, how he had come to that situation. He shrugged his shoulders and he said he only used his card to buy and pay the minimum on each (60 $) per month because it was more convenient.

Well, it's time to take the bull by the horns and design a plan to pay off our debts. Let's do the numbers:

1. Keeping current payments (60 $ / month), the result would be:

Assuming you do not spend anything more with the cards, the total interest paid would amount to 2,830.89 $ and would take 4 years and two months to pay the three cards.

2. Increasing on each card payments only at 20 $ / month, the result would be:

The total interest paid would amount to 1,826.58 $ and would take 2 years and 9 months to pay the three cards. It would save more than 1,000 $ .

3. Increasing the monthly payment doubled, the result is striking:

The total interest paid would amount to 1,088.22 $ and would take 1 year and 6 months to cancel all three scorecards. It would save more than 1,800 $.

Do not you think it's worth a little effort? Note, plus interest that we saved the most important thing is that we canceled the debt before, so we will be able to save money before.