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Math Proves Credit Card Debt Almost Impossible to Repay

By Jonathan on February 29, 2008

My colleague, Houston attorney Pamela Stewart, recently posted on her blog this interesting table that shows just how long it would take to pay off credit card debt if you make only minimum payments.  If you have been sending in only minimum payments and you have a hunch that you have paid your debt two, three, even four times over, you may just be right.

This table assumes a 2.5% minimum percentage payment, and an absolute minimum payment requirement of $10.00 per month at an interest rate of 17%.

 

 Amount Owed  Time Required to Pay Off Debt  Total Interest Expense
 $1,000  12 years  $979
 $5,000  24 1/3 years  $6,210
 $10,000  29 years  $12,745

 

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Susan Blum and Jonathan Ginsberg

Ginsberg Law Offices
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Atlanta, Georgia 30338-5174

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