When interest works against you

Screen Shot 2014-12-16 at 10.33.31 AMInterest is great when you’re saving. But my savings account only earns like 0.25%. My credit cards on the other hand — WHEW! They charge waaaaaay more.

I just checked an email that said “Your Credit Card or Loan Statement is Available.” Woo hoo! What a great way to start the day!

So I look at the balance and expected it to be less than it is. I’m like, “I just paid more than the minimum. Why did the balance only go down $40?” So I open the statement and read that I was charged $30+ interest on previous charges. I must remind myself that a huge chunk of my monthly payment is going to interest. And that really burns my beans, chaps my hide, etc.

In 2014, I’ve been charged nearly $350 in interest. Ugh! I knew credit card interest sucked, but reading the fine print in statements reinforces its suck-iness.

If this isn’t motivation to pay off my credit cards AND less interest, then I don’t know what is. The pros and cons of interest really should be taught in homes and high schools across America. It’s not a game!

Understanding Credit Card Interest

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