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Was the stuff you bought worth $29k in interest?

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Sometimes it helps to look at the cost of clutter from a different angle.

Do you ever think about the hidden costs of the stuff you buy?

This chart below, courtesy of Seeing Finance, shows you in graphic detail how long it would take to pay off credit cart debt if you just make the minimum payment – and more importantly – how much additional interest you would pay over time.

If you use credit cards to purchase things and pay them off over time, do you ever factor in the added cost of interest to the purchase price?

I hadn’t previously. But this visualization made me think it might be a good idea…

Posted by Sarah on Mar 07, 2012 print article e-mail to a friend

budgles

That is truly frightening. I heard a recent statistic that the U.S. carries more student loan debt than credit card debt these days. I got my first credit card when I was 17 (I paid the bill myself), and I had always grown up thinking that you HAD to pay the entire balance (b/c that’s what the ‘rents did), like a charge card such as AmEx. So to this day, I never carry a balance. I have passed on this same good habit to my husband. We charge nearly everything and deposit our credit card rewards in our joint savings. I wish everyone was raised w/ good fiscal habits -it pains me to see people battling debt. It must be SO stressful.

: Sarah, Featured, Finances, Life Essentials