Credit card purchase
What does it really cost if you carry it?
Result
At €50.00 a month, that €1,200.00 purchase takes 2 years and 7 months to pay off.
You pay €1,542.85 in the end — €342.85 more than the price, or 28.6% on top.
Price · €1,200.00Interest · €342.85
Where the money goes
Price€1,200.00
Interest€342.85
I want to be done within€31.73 a month
Total€1,542.85
What this means
A credit card charges interest on whatever is left at the end of each month, so a payment barely above the interest buys almost nothing. The gap between the minimum and a real payment is usually the difference between a few months and a few years.
Next step
Get it cleared
Money Compass lists every card next to the rest, in the order that gets you out fastest.
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