How Much Are You Paying For Credit?

Would you buy Gas for your vehicle with no idea how much it was a gallon? Probably not, right? Well think about it, if you use credit cards without a budget or spending plan you kind of do that everyday. Why do I say that because we all know there is a cost for using credit cards versus cash, and like buying milk and bread at the convenience store that cost is more? How do we convince ourselves it is not a big deal, well the credit card companies help us with that state of mind. We are able to rationalize the incremental cost of having it now is worth it in the long-term. However, most of us don't consider the true cost in the long-term based on the interest rates credit card companies are charging for that convenience. When you have a need for speed you purchase a car with a bigger engine (usually resulting in higher fuel cost, insurance, maintenance and related expenses)and when you have a need for instant gratification you usually pull out the credit card (resulting in interest and fees). How are these similar, because if you are a responsible driver, your speeds in most cases will align with the speed limits on the road and you probably didn't need to make that additional investment and similarly if you don't have a short term need for the items you purchased did you really need to buy it with a credit card? The link below is one of many providers on the internet making a credit card calculator available to help people understand the true long-term cost of credit cards. I strongly recommend you take the time to use this or any other available to determine the cost and duration of current credit card obligation in hope it will shine a light on a growing problem that is not going to just go away with the next economic recovery whenever that might be?


http://www.bankrate.com/free-content/credit-cards/calculators/free-credit-card-payoff-calculator/