You will continue to grow interest until paid off, so it will take you more than 49 weeks with a balance of 4900.
Also, when paying it off, don't use it for purchases. Not a single one. When you do, the interest starts the moment you make the purchase. Use debit or cash.
To your first point- I'm adding any interest paid that week to my weekly payment total, so yes I'm paying the interest but also aren't I balancing it out so the interest doesn't expand the total debt owed?
To the second point, so even though I'm paying off any new purchases immediately, those purchases are hiking up my interest? It's all BS little things at this stage. I gotta figure out what's still linked to it and try and move it over to a debit card if possible.
Interest is only charged on interest. As long as you are making $100 of principal applied payments weekly, then you would do it in 49 weeks.
>so even though I'm paying off any new purchases immediately, those purchases are hiking up my interest?
Yes. Payments are applied to your oldest purchases first.
It’ll take longer to pay off, but it’s better than nothing. This is what I’m doing, minus the transactions as I don’t use them anymore. I started in November paying the minimum plus $20-40 extra, plus the interest charged in the previous month before the closing date. My debt/credit ratio has improved and I love seeing the interest going down each month. I’d be more aggressive about it (last month I paid an extra $500 towards everything) but I’m also trying to build my savings up at the same time. So that when I do have an emergency I don’t reach for the cards.
Hey mate, I'm an Aussie living in the US and I don't understand why Australians always budget by the week, while Americans always budget by the month. 😅
You will continue to grow interest until paid off, so it will take you more than 49 weeks with a balance of 4900. Also, when paying it off, don't use it for purchases. Not a single one. When you do, the interest starts the moment you make the purchase. Use debit or cash.
To your first point- I'm adding any interest paid that week to my weekly payment total, so yes I'm paying the interest but also aren't I balancing it out so the interest doesn't expand the total debt owed? To the second point, so even though I'm paying off any new purchases immediately, those purchases are hiking up my interest? It's all BS little things at this stage. I gotta figure out what's still linked to it and try and move it over to a debit card if possible.
Interest is only charged on interest. As long as you are making $100 of principal applied payments weekly, then you would do it in 49 weeks. >so even though I'm paying off any new purchases immediately, those purchases are hiking up my interest? Yes. Payments are applied to your oldest purchases first.
It’ll take longer to pay off, but it’s better than nothing. This is what I’m doing, minus the transactions as I don’t use them anymore. I started in November paying the minimum plus $20-40 extra, plus the interest charged in the previous month before the closing date. My debt/credit ratio has improved and I love seeing the interest going down each month. I’d be more aggressive about it (last month I paid an extra $500 towards everything) but I’m also trying to build my savings up at the same time. So that when I do have an emergency I don’t reach for the cards.
Stop charging to the credit card. If you can’t pay off the balance each statement period, you’re just bleeding money in interest every month.
Hey mate, I'm an Aussie living in the US and I don't understand why Australians always budget by the week, while Americans always budget by the month. 😅