Compound Interest Can Work Against You

Just like you can earn profits on money you have, banks and other financial institutions lend you money to earn compound engrossment on the money they lend out.

Here is an example of how compound engrossment works against you.

 

Credit Card Debt

If You Have A $3,000 Credit Card Balance At A 24% Annual Interest Rate*, And You Only Pay The Required Minimum payment of $61…

It would take you at least 18 years to pay it off**

It would take  you over 216 payments**

More than $9,600 in profit alone**

 All figures are for illustrative purposes only.
*Average store credit card APR
**Source: Credit Card Calculator, available at https://smartasset.com/credit-cards/credit-card-calculator