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o 7,200 while charging just 350 a month.</p><p id="4fa9">Sounds good, saving 800, but really they should do a debt consolidation loan at 350 a month, that will allow them to pay an additional 150 a month on the principal without penalty. Quicker it’s paid, the less interest paid.</p><p id="d789"><b>Then they repeat everything when the loan hits 800 remaining to pay back.</b></p><div id="96b2" class="link-block"> <a href="https://blog.selfimprovements.net/patience-promotes-independence-7130b5c293a3"> <div> <div> <h2>Patience Promotes Independence</h2> <div><h3>No one can escape</h3></div> <div><p>blog.selfimprovements.net</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*9jiP51fL89w7YeKd3UdziQ.jpeg)"></div> </div> </div> </a> </div><div id="df26" class="link-block"> <a href="https://readmedium.com/what-to-finance-for-the-teen-guide-7354902610c"> <div> <div> <h2>What to Finance for: the teen guide</h2> <div><h3>It is the difference between what we drive and where we live</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*Oh9b3kP25xyBUBuw_4oOOA.jpeg)"></div> </div> </div> </a> </div><div id="d894" class="link-block"> <a href="https://readmedium.com/teens-calculating-your-hourly-wage-c9ccf82da022"> <div> <div> <h2>Tee

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Why it Takes Years to pay back Credit Cards

More simple than most think

Photo by Karolina Grabowska from Pexels

Quick Answer

The quick answer is when people take out $1,000 in credit and pay $100 a month to pay it back, they will convince themselves to use it again in like two months.

That accumulates to 10 months to pay it back. Then the spouse drops $2,000 for a new couch set in month five on “store credit”.

“We can do $200 a month for $3,000”. That takes 15 months to pay back if there’s no interest. Who stops using the card for a whole year? No one.

Then the family spends the same amount they usually do on any given day and does not compensate for the $200 a month. It’s ideal to increase the monthly payments to $300 or $400 a month if possible.

Then Christmas gets put on credit, because the Christmas savings used to be $150 a month throughout the year and now has been replaced by paying back credit.

And within 5 years, the family is paying $500 a month to pay credit.

In year six they do a debt consolidation loan. Which, essentially takes their $6,000 credit debt (8,000 total after interest) and brings it to $7,200 while charging just $350 a month.

Sounds good, saving $800, but really they should do a debt consolidation loan at $350 a month, that will allow them to pay an additional $150 a month on the principal without penalty. Quicker it’s paid, the less interest paid.

Then they repeat everything when the loan hits $800 remaining to pay back.

Money
Finance
Family
Wisdom
Children
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