Turn the lesson into action. Run these against your own numbers — that is where it becomes real.
Monthly interest charged$73
Actually reduces your balance$7
A $4,000 balance at 22% APR with an $80 minimum payment. The minimum is engineered to keep the balance alive, not to retire it.
20%Clearing a card charging 20% is mathematically identical to a guaranteed, risk-free 20% return. Almost nothing you will be offered beats it.
- Right now, are you a transactor (pay in full) or a revolver (carry a balance)?
- Is autopay set to the full statement balance? If not, turn it on today.
- What reward or protection are you currently leaving on the table?
Put it into practiceRun your own numbers with the Basis Points Credit Card Payoff Calculator, then come back and finish your plan above.