Carrying credit card balances can cost you more than you may realize over the long term. The problem with these types of debts is that interest silently continues to build no matter how long it takes you to repay the total amount.
How High are the Costs?
Making only the minimum payments month after month doesn’t even touch the balance in most cases. In essence, it’s donating free money you’re to the credit card company that does little or nothing to resolve or reduce your debt. And if you carry balances on more than one credit card, the problem is compounded.
For instance, CNBC reports that paying the minimum balance on a $6,081 credit card debt each month will ultimately cost you $4,064 in interest.
Meanwhile, you’re left dealing with the following:
- A steady string of collection calls.
- Debt that feels like it will never end.
- A greatly reduced net worth.
- A marked loss of self-worth.
- Fights over money at home.
- Constant feelings of anxiety and stress over your debt.