Skip to main content

The Line is Long, Still You'll Only Pay a Minimum Payment

I find it funny whenever I see people falling in line and then pay only a minimum payment for their credit card. I will give you an example below.

Let's say you have a 20,000 pesos balance in your card and the bank stated on your billing statement that you can pay 1,000 pesos as a minimum payment. Usually, the bank charges you a 3.5% finance charge or interest for the remaining balance you have every month. If you pay 1,000 this month, your 20,000 will be 19,000. However, when you receive your bill, your expected amount turned out to be 19,665 instead of 19,000. Imagine you paid 1,000 but later on found out that only 335 has been deducted on your balance. It's a little bit insane if you do that every single month.

Let's do another math for the second month. Again, let's say you continue pay 1k for the remaining balance you have. 19,665 will become 19,318.28 instead of 18,665. That's because of the finance charge that the bank imposed on their cardholders. If you don't know this, it will take you long before you fully paid your loan. I suggest you to pay it in full but if you say in front of me that you don't have that amount of money, then pay at least half of it or a little bit higher than 1,000 so you won't suffer from being a slave of your bank.

Also, here in my country, the Philippines, the line for paying your bills is very long. It will consume a lot of your time just waiting for your turn. And then you present to cashier a 1,000 bill to pay your 20,000 credit. If you value time, you won't act that way. Pay it in full so you won't accumulate big debts in the long run.

Also, I think this is one of the reasons why people treat credit card as bad. They jump to the conclusion that having it will only get you in trouble and more debts on your belt. But this is what I can say to them. If you know what techniques and strategies to follow, then you will change the way you look at credit card and start valuing it.

I hope you like it. Feel free to leave your thoughts below esp. if you're like the person I mentioned above, paying only a minimum payment.

Comments

Popular posts from this blog

Avoid Sticking To Unproductive People

Actually, this stuff I am about to share can be good or bad. It depends on where you get influence from. If the influence can help you achieve your goals, then that is good and vice versa if it can only lead you to misfortune. Anyway, I would like to put here the paragraph I read somewhere. I hope it makes sense to you. Avoid sticking to people who have hobbies of collecting stuff which are too much expensive. In the end, you'll be like them through the influence or the process.

Earn Real Money From Your Blog

If you want to make money from your blog, be serious about it and treat it as a real business. What I mean about that is don't depend on free stuff only and operate without spending a dime. Purchase a domain name either from these two well-known and trusted domain registrar: godaddy.com or namecheap.com . Consider also the storage or placeholder of your web pages or blog by buying web hosting. It is where you have a complete control over your website or blog including the design and code-behind.

Don't Look Outside, Look Inside

I learned that if you're planning and looking on what kind of business to start in, then don't look outside and be hard on yourself, but look inside. What I mean by this is don't imitate what others are doing just because that business is in or is doing well because chances are it will not work to you or you lose interest on it as time goes by. Look at your skill sets and choose one among those that you really love doing and profitable. Meaning even if you're not being paid to do it, you wake up every day and do it anyway. You will not treat it as a work or job because you love what you are doing. But I warn you that you should treat it as a business. Be serious in achieving your goals at the same time enjoy every moment.