Visualize Credit Card Use: That $8.50 Lunch Costs You $850 at Age 63 and $8,500 by Age 85

lunchBy David John Marotta

If your credit card minimum payment was $10 and you repaid it every month for 15 1/2 years with an accruing interest of 15.9%, a $1,000 purchase would end up costing $2,250. Every time you use your credit card to pay for something you risk it being marked up two and a half times the normal sales price. Over time, that $10 T-shirt cost you $22.50!

Whenever you use your credit card, imagine that two and a half times the price of what you are buying will be deducted from your account over the next decade.

Students assume that they can run up a credit card bill because it will be easy to pay it off after they graduate when they get a high paying job. But the larger your d

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5 Responses to Visualize Credit Card Use: That $8.50 Lunch Costs You $850 at Age 63 and $8,500 by Age 85

  1. Minimum Wage says:

    Student loans can also be bad debt when the education does not pay off in increased earnings.

  2. simon says:

    Many college students do not believe they should have a credit card. In many cases the decision to have a credit card while a college student Having a credit card while in college with a small credit limit may actually aid you after graduation provided you always pay either the balance in full or the minimum payment due on or before the due date.

  3. Pingback: Good article on credit cards - Early Retirement Forums

  4. Minimum Wage says:

    Moral of this story:

    Do NOT visualize whirled peas, it could really cost you!

  5. Pingback: Carnival of Personal Finance #127 - Wonders of the World | Moolanomy

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