Credit Card Debt Relief: Who Needs It? Being stuck in a credit card debt is a difficult, not to mention a stressful situation. People who have gone through and out of it, whether by their own effort or through a credit card debt relief, know how it feels.
A lot of us, however, do not understand the repercussions of being buried neck-deep until the first few symptoms occur: endless minimum payments and zero savings despite a growing income. Then we feel less motivated at work and tired of being broke but have no clear idea why. One reason is that we don’t take a closer look at our liabilities, and that include credit card debts. “Not Fun” Fact: Credit cards have very high interest rates, though things vary from company to company. It’s fun when you can freely spend by just swiping a plastic but it gets ugly when you realize you can only afford minimum monthly payments. Let’s say you have an 18% APR on your card. What does 18% interest mean when you’re only making minimum payments? Easy, in fact you can just use this online calculator to see where minimum payments are going to lead you. For example, you have $10,000 credit card balance with an annual rate of 18% and your minimum payment is calculated by adding the interest rate and 1% of your balance. You credit card company is asking only $250 payments every month.