What a mug's game using credit cards to buy goods is unless you
pay off your debt in full at the end of each month!
Let's consider someone with £1,600 worth of debt on a typical credit card
with an APR of around 20%
The minimum monthly payment requested would be about £42, but look
very carefully and about £30 of that would be paid towards the interest!
This means that only £12 would actually be going towards the actual debt,
and at that pathetic rate it could take you around 11 years to clear your debt!
The bottom line is that this approach to debt is akin to in effect burning
£360 of cash each year!
So hopefully this will be quite an incentive for you to pay off your credit card
debt as soon as possible, as well as curbing your spending in the stressful run-up
to Christmas!
Wise spending and penny wise!
Aled Evans
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