Posted by Rex Dixon :: June 13, 2007 @ 1:31 pmYou have a credit card, and you just charged $1000. This is very easy to do and yet extremely tough to pay off. While the news bulletin about credit cards doubling their minimum payment rate is old news, the fact remains the same. If you were to only pay the minimum payment, on time with no late fees or additional charges, it could take 22 years to pay off that $1000!
For the estimated 40% of cardholders who carry a balance from month to month, the low minimums free up cash. But paying off a big charge little by ever-so-little also means that a $1,000 debt can turn into a 22-year commitment -- and that you'll accumulate thousands more in interest in the meantime.
Information such as the one above makes us wonder if there is an improved way to pay off your credit card debt. For people with good credit, we have a great answer. The answer is a 3 year term loan with convenient electronic payments and a rate that doesn’t go up.
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