Don’t Be A Sucker; Stay Away From Credit

On January the 28^th, a credit agency called Dun and Bradstreet released results of a survey. This survey indicated that 4 in 10 Australians are resorting to credit cards to keep their household budgets moving.

In fact, they found that some households are using credit cards to cover necessities such as groceries.

You have to understand the impact of using credit. According to Canstar Cannex the average credit card interest charged in Sept. 2009 was 16.5%.

Let’s say you have a credit card with a $2500 balance on there. You pay off minimum payments each month until it is paid off. Your interest balance is the average of 16.5%.

It will take you 19 years if you make no more charges and make only the minimum payment on time each month.

Plus you will pay $4,004 in interest charges over that time.

But let’s look at a $5000 credit balance.

It will take you 29 years if you make no more charges and make only the minimum payment on time each month.

Plus you will pay $9,504 in interest charges over that time.

$10,000: It will take you 38 years if you make no more charges and make only the minimum payment on time each month.

Plus you will pay $20,504 in interest charges over that time.

$20,000: It will take you 47 years if you make no more charges and make only the minimum payment on time each month.

Plus you will pay $42,504 in interest charges over that time.

And finally $25,000: It will take you 50 years if you make no more charges and make only the minimum payment on time each month.

Plus you will pay $53,504 in interest charges over that time.

As you can see these plasitic cards are close to criminal. They are a money cow for the banks. That is why there is flat out advertising on the cards. The more they can get these little timebombs out there, the more likely someone is going to use them in a stupid way.

Get rid of your cards now.