What Paying Off Credit Card Debt Really Looks Like

According to CardWeb.com, the average American household with at least one credit card has nearly $10,700 in credit-card debt with an average interest rate that runs in the mid- to high teens at any given time.

How do we get ourselves in so deep? ┬áThis infographic from Visualizing Economics┬áreminds us of the power of a little thing called compound interest and how it can have you spending in upwards of 50% more than the original purchase price of the item you put on your credit card. While in the short run, it may seem like a good idea to just make your minimum monthly payment, it’s pretty evident that such a decision can haunt you for long after you swipe your card (in this case, over seven years!).

PayoffYourDebt 650x944 What Paying Off Credit Card Debt Really Looks Like

(via Visualizing Economics)