See Two Ways Jane Can Pay Off Credit Card Debt!

See-Two-Ways-Jane-Can-Pay-Off-Credit-Card-Debt

See Two Ways Jane Can Pay Off Credit Card Debt!

See Jane get a raise!

Jane’s raise nets her an additional $1,000 per month. Go, Jane, go!

Jane is smart! She wants to use her raise to: 1) pay down credit card debt; 2) start emergency savings.

Now, Jane needs help. What is the best way to split that $1,000 per month between paying down credit card debt and building up her emergency fund? We can help Jane! See us do the math!

First, Jane carries a $10,000 debt balance on her card at 20% APR.

If she pays the minimum monthly payment of $200 per month toward her debt, she can put $800 per month into her emergency savings. Her $10,000 credit card debt will then take nine years to pay off, and she’ll also pay $11,680 in interest charges.

If Jane doubles her credit card payment to $400 per month, she can put $600 per month into her emergency savings. Now, it will take Jane two years and seven months to pay off the $10,000, and she’ll pay $3,044 in interest charges.

See Jane’s two payoff options in this nifty chart!

See Two Ways Jane Can Pay Off Credit Card Debt!

If you were Jane, based on what’s above, how would you split your extra $1,000 across your credit card debt and emergency fund? 

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