Manage your credit responsibly to ensure a worry-free financial futureMonday Apr 19, 2010
If you’re like me, you’ve received your student credit card statements and noticed something different. Now, your credit card statements break down for you how long it will take you to pay off your debt IF you only pay the minimum amount required. This is due to the CARD Act that went into effect in February. This is good news for students who are just learning how to be responsible with their credit. The chart puts into perspective just how long it will take to pay off debt while putting the specific APR right in front of you as well. In this regard, it can help you save money, too.
How you might ask? Well, now that you have all of this information hand-picked and placed in front of you, you begin to realize just how you’re going to pay your debt back. For instance, if you’ve always been a ‘I’ll only pay the minimum’ kind of guy or gal, you can break down what you’re actually paying per day and how this effects your interest. Most credit card companies charge you interest daily. If you’re aware of how much you’re paying on a daily basis to carry your credit card balance, you’re much more likely to use credit less and pay it off faster. Now, if you always pay your balance each month, no interest will be charged to you.
Again, learning how to responsibly use credit and how to pay it off is essential for students later in life. The more you know about your student credit card, the better off you will be when you apply for that BLACK card in the future.
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