The moment I saw my minimum payment barely touch the principal was when it clicked

Ngl I thought paying the minimum was fine until I looked at my credit card statement last month and saw only $8 of my $150 payment went to the actual balance. Has anyone else had that gut punch where you realize the bank is just collecting interest and you arent getting anywhere?

3 comments

3 Comments

finleyl3921d ago

Wait, thats not how it works? I used to think minimum payments were fine too.

claire87221d ago

Wait isn't that how credit card companies get rich?

emery29021d ago

$847 in interest last year thanks to minimum payments on a $4k balance. @claire872 asked how they get rich - that's basically their business model. Paying the minimum is like paying rent on money you already spent, the bank loves it when you think that's fine.