CreditClix

Are you paying too much for Credit?

If you have been thinking of putting your money to work for the there is no better way than paying the lowest amount of interest. Credit affords you the ability to create a leverage that affords you opportunities that you normally would not have. With the additional leverage you have the ability to purchase a home, buy a business and purchase things you otherwise would not be able to do.

Money becomes more valuable over time

A commonly financial term is the time value of Money or TVM. The time value of money factor is what mony is worth at a certain percentage rate over a period of time. Here is a simple example. Would you pay 2.5 dollars for a piece of pizza? Most likely that sound like a fair price, well how about $3.32 cents. That doesn't sound to bad either, but what if I came to you and said I am going to charge you $16.80 for that same piece of pizza? And if you have bad credit the cost of the pizza is going to be $34.46.

Most people would say no thanks if they new they are being charges $34.46 cents for a piece of Pizza. But everyday people are charging on their high interest credit cards and only making the minimum payments. My example above is simply the dollar value of the pizza and what it is worth in 10 years at (2.9%, 21% and 30%).

Saving Thousands of dollars

Using this example you get a very good idea of how much money you can save with a 2.9% credit card versus the 21%, the difference is over 13 dollars. And you don't need to understand finance to save thousands of dollars on your debt. Keeping your debt at the lowest possible interest rate will save you thousand and thousand of dollars