A Life Sentence of Minimum Payments
A life sentence of minimum payments?
During a recent coaching appointment, my client and I looked at her credit card statement and discovered something disturbing while putting together her debt reduction plan. Although she doesn’t have an astronomical amount of debt (just under $8,000), my client felt like her credit card balance wasn’t budging. Part of the problem is her interest rate: 19.49%. Yikes! That’s well above the average credit card rate of 15%. (The following pictures are shared with her permission.)
My client can afford to make the monthly payments, but finds it hard to pay extra on a consistent basis because she’s self-employed with variable income. Here’s the problem: if you only pay the minimum on your credit cards, you’re sentencing yourself to a lifetime of payments!