Wednesday, July 7, 2010

How much interest are you really paying

Almost a year ago now I noticed that the interest rates were at an all time low so my husband and I looked into refinancing our home to lock into these very low rates. When looking into refinancing we found out the that in the first three years of our home loan most of our payment went to interest and about $80.00 went to the principal each month. This got me into tracking my interest and finding ways to save on interest.

If you have lots of debt tally up each month how much interest you are really paying each month. If you have 10 credit cards and pay them $30.00 to $50.00 on interest each month. That is $300.00 to $500.00 a month or $3,600.00 to $6,00.00 per year. Just think you could be investing that amount each month for your future instead your lenders are getting that money each month. In a sense you are letting them take you future, This could be the money you could be stashing away for your retirment.

I challange you to look at all of your debt statments and see how much in dollars your debt is costing you each month not just the percent. I think this number alone will motivate you to get your credit cards paid off as soon as possible.

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