The Cost of Credit
| Rate |
1,000.00 |
2,000.00 |
3,000.00 |
4,000.00 |
5,000.00 |
| 14% |
$ 140.00 |
$ 280.00 |
$ 420.00 |
$ 560.00 |
$ 700.00 |
| 15% |
$ 150.00 |
$ 300.00 |
$ 450.00 |
$ 600.00 |
$ 750.00 |
| 16% |
$ 160.00 |
$ 320.00 |
$ 480.00 |
$ 640.00 |
$ 800.00 |
| 17% |
$ 170.00 |
$ 340.00 |
$ 510.00 |
$ 680.00 |
$ 850.00 |
| 18% |
$ 180.00 |
$ 360.00 |
$ 540.00 |
$ 720 00 |
$ 900.00 |
| 19% |
$ 190.00 |
$ 380.00 |
$ 570.00 |
$ 760.00 |
$ 950.00 |
| 20% |
$ 200.00 |
$ 400.00 |
$ 600.00 |
$ 800.00 |
$ 1,000.00 |
| 21% |
$ 210.00 |
$ 420.00 |
$ 630.00 |
$ 840.00 |
$ 1,050.00 |
| 22% |
$ 220.00 |
$ 440.00 |
$ 660.00 |
$ 880.00 |
$ 1,100.00 |
As evidenced by this chart, you can see that credit is not free money. If you hold an average daily balance of $3000.00 on a credit card charging 21%, you will pay $630 a year in interest charges.
How much do you owe and what interest rate are you being charged? Review your billing statements and compare them with the chart to see what credit is costing you per year.
This is a complicated area of law and an attorney should be consulted on all matters relating to bankruptcy. The information on this website is provided with the understanding that the authors and publishers are not herein engaged in rendering bankruptcy, legal, insolvency, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional bankruptcy, insolvency, tax, legal or other competent advisors. While we have made every attempt to ensure that the information contained in this website has been obtained from reliable sources, Credit Advisors Foundation and Arbor Investment are not responsible for any errors or omissions, or for the results obtained from the use of this information.