Credit cards are great financial tools, if you know how to use them. Unfortunately these days, many individuals are in the unenviable position of having immense amounts of credit card debt due to a staggering rate of purchases for non-essential goods and services. In 1980, revolving debt in the United States was $54 billion. By 2004, that amount had exploded to a whopping $753 billion! 

 

Households carrying credit card debt, where only minimum monthly payments are being made, are allowing a huge portion of the family income to be drained by the amount of interest paid vs. the amount of money being dedicated toward the retirement of principal debt.

 

Take a look at this shocking example from TruthAboutCredit.org:

 

				Total Payments
Monthly Payment	APR	First yr Interest	Total Interest	Months	Years
2% of balance	16%	$770	$8,350	314	26.2
10% of balance	16%	$507	$743	46	3.8
Savings		$263	$7,607	268	22.4

Use the calculator below for credit card comparison to determine how much money you could save and divert from credit card liability to your wealthbuilding goals.