Robert just told me that the new changes to credit card laws go
into effect next month. What this means is that instead of your
minimum payment being interest plus $15, it will be interest plus 1 %
of your outstanding balance. The average credit card balance for
Americans is $10,000. The average minimum payment will go
from $210 to $280.
I am mentioning this because you may not be getting much information from the press or from your bank on this., so be prepared.
The good news on this change, however, means that a person will
actually save a huge amount of money in the long run by paying back the
higher minimum. For example (I used Robert's online calculator at
the hyperlink below) to find out how much a person who owes $10,000
will save by paying the higher minimum.
At the old rate, $10,000 would be paid off in nine years with payments of $210 at a total cost of $21,630.
With the new rate, $10,000 would be paid off in less than 5 years at a total cost of $15,960--a savings of $5,670!
If you want to visit Robert's site here is the
hyperlink:
http://www.intrepid.com/~robertl/loan-pricer1.html
|
