Assuming the world does not come to an end in 2012, the year 2058 should be a date etched into the minds of anyone carrying a balance on a credit card.
I admit I did not hear the entire story reported by Clark Howard – a syndicated talk show host who doubles as a consumer advocate who is based in Atlanta. But what I did hear was a real eye-opener. (Or was it an ear-opener?)
In any case, it should be a loud wake-up call for all Americans who see no reason to pay off their credit cards each month.
The message was clear. If you stop using your credit card and simply pay the minimum payment each moth. Your balance will be paid in full in 2058.
Let’s make it even more direct. By paying nothing more than what the bank calls the minimum payment, it will take you forty-eight years to pay off the bill.
You might think that’s impossible, but look at your interest rate. Paying the minimum does not lower your interest rate. In fact, it barely lowers your balance. Most of that minimum payment goes to pay the interest.
So, get those credit cards paid off as quickly as possible. Then take half of the money you’re saving and make a donation to some worthwhile charity such as the Mission on the Bay in Mississippi.