Credit Cards

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$700 from 1983.
The reason these credit card companies are focusing on the low-income people is that once they are in debt, they can only afford to make the minimum payment and therefor can never pay off the balance of the credit card. For example, it would take 34 years to pay off a $2500 balance if a person just paid the banks suggested minimum payment. The middle class is also going further into debt. Credit card debt rose 23.5% from January 1997 to March 1998. Sixty three percent of all U.S. households now owe money on their , and last year they spent $70 billion in interest charges and fees. Credit card debt now accounts for 43% of all consumer loans and is growing faster than all other types of household borrowing, including home mortgages or auto loans. The average household now owes an amount equal to 95% of their yearly income (Dollars and Sense). Credit card companies make it is very easy to get into debt, but almost impossible to get out. The problem being that if you ...

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that gets paid off first.
4. Pay the minimum on all cards each month except for the "chosen" card with the highest balance. Any difference between the minimum amounts due and the "goal" amount should be added to the minimum amount due on the chosen card. As that card is paid off, the money you were paying on it gets transferred to the next highest-interest card with the highest balance. You will continue to pay off this way until they are all paid off.
5. If possible, you should try to make your goal amount higher than the minimum amount due. Even $10 extra a month will help. It is much better to put any extra money you have towards paying off a card with a 18% interest rate, then ...

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