Claim Back Money - Some FREE Advice

Credit Cards - Your worst enemy

We all have credit cards but do you know that you will never finish paying off the debt on the credit card if you keep making minimum payments every single month?

I sat down with a client on Friday, she had £3200 on her credit card, she was making just about more than her monthly minimum payments (£105.00). So I thought lets have a look at this and work out how long it would take her to pay off the credit card. To my surprise it would take her five years to pay off the balance in full, however if like most people it was just the minimum payment every single month then in a 100 years she wouldn't have paid off the card.

"Let me repeat that, on a £3200 debt on a credit card making minimum payments every month, in 100 years the debt wouldn't be cleared"

So I thought let me work out the minimum debt I could have on the credit card and it still wouldn't be paid off on the credit card in a 100 years. Do you know how little an amount it is? £3.00 I know it's only £3, but how many people in the country have a debt on a credit card that is more than £500.00 as an example.

Yes, we all know that we use the cards for emergences, and yes we aim to pay off the credit cards as soon as possible, but should this kind of service be allowed?

I have made these calculations based on you making a minimum payment on the credit card per month which works out to be 3% (that's the figure from the credit card company). They then charge you 2.48% on the debt that is out standing every month. So your paying off 0.52% of your credit card debt every single month.

So when did you credit card company last phone you and say, hay look we know you are only making the minimum payment on your credit card, can we suggest something to you?

We all know that times are hard at the moment, but did you make the last month's minimum payment on your credit card? Yes?

Then I would phone up the Credit Card Company and say, can I know fix that payment every single month until it's paid off please (using last months minimum payment as the figure).

Fix your credit card payments NOW at last months minimum payment; you will then stand a chance in paying off your credit card debt in 5 to 25 years depending on the debt!

Check out how much money would have been paid to the credit card company as well, based on £3200 outstanding:

OSB AIP APL

Totals at 5 Years £2,352.67 £4,099.46 £859.57

Totals at 10 Years £1,720.71 £7,097.75 £1,488.24

Totals 15 Years £1,258.50 £9,290.66 £1,948.04

Totals 20 Years £920.45 £10,894.52 £2,284.34

Totals 25 Years £673.20 £12,067.57 £2,530.30

OSB = Out standing balance on debt

AIP = Amount of interest paid on the debt in total

APL = Amount of the debt on the card that has been paid off

I don't think I need to list the 50 and 100 year figures, but needless to say there is still an out standing balance and alot of money paid to the credit card company.

If you would like to know how long it would take you to pay off your debt, making your last months minimum payment every month and not spending any more money on the card, then get in touch.

These figures are just on one of my credit cards, please remember that different companies charge different interest rates, so when you fill in the form, please do give me your interest rate, so that I can work out how much method of paying back credit cards can work for you.