The privilege of credit

January 10, 2009 at 11:42 am (credit cards) (, )

There’s a bunch of debt calculators out there. You plug in your balance, the interest rate, and how much the minimum payment is. It calculates how long it takes to pay it off (which is usually a depressingly long time). Increase the payments and it becomes a great tool to find out how long it will take you to be debt free. There are several that help you figure out how much in interest you pay per year. I wish I could post some of these links here, but unfortunately, I can’t include them, since the link is on my old computer, and I’m now on my new computer! I’ll have to post it later as a comment.

For $45K of debt, I’ve been paying $3,300 every year for the privilege of having debt. What would you do if you had an extra $3,300 lying around??

I’ve gotten over the guilt and upset of losing so much money on interest rates. Now I’m just chugging away at paying it off. I feel like a turtle that’s pulled into its shell and all I can see is that point 5-6 years down the road when it’s all gone.

How much do you spend on interest a year? What would you do with the extra money if you didn’t have to send it to a credit card company or a bank?

Jan 9 update: Here’s the link to some good debt calculators. The Actual Cost of Debt Calculator is what you’ll want to check on how much interest you pay per year for your card.

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1 Comment

  1. Debtfree2009 said,

    I think the interest on the credit card and car together is just under $100. Now for the house that is another whole story. I think our house interest was $9000 for the year.

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