Graphic The true cost of credit

What you really pay when making minimum payments

Suppose you purchase a $400 plane ticket for vacation and charge it to your credit card, which has an 18% interest rate.

Instead of paying off the balance in full, you make the minimum payment each month of $15.

By the time you pay off the balance, after almost three years, you have paid $115 in interest for a total cost of $515.*

Charging to a credit card may seem like an easy way of making a big purchase in the moment. However, paying down such purchases can be a long and expensive process if you make only the minimum payments.

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