- October 27, 2011
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? This infographic from Visualizing Economics reminds 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!).
(via Visualizing Economics)