You may be tempted to pay the minimum on your credit card and keep the rest for a potential emergency, but…
Think about how much further you would be ahead if you paid down your credit card and then had the available credit to use for emergencies?
The minimum payment is usually 2% of the total balance due. Paying the minimum, assuming you do not charge anything new to the card, will take an average of 30 years to pay off. Depending on the interest rate, you will also end up paying somewhere between 3X and 10X your original balance (in other words, for a $2K starting balance you could end up paying between $6,000 and $20,000 in total payments).
Remember, when you carry a balance, you are paying a lot more for whatever you purchased. Keep that in mind before you make that “gotta have it now” purchase.
Money Moms know the true value of a dollar and are committed to optimizing income, minimizing expenses, and leveraging debt so their money works for them. If you want to learn how to make more, keep more, and grow wealth, email me to see if working together can help you cut the learning curve to financial success.