All about the credit cards today
In today's show, we're talking credit cards. What to look for, what to avoid, and how to calculate a minimum payment. If you can't calculate your minimum payment, then honestly, you really shouldn't have a credit card. It's that important to know and understand how they work. Here's the basic formula:
Average daily balance + interest = total balance for period * 4% = minimum payment
Example: $1,000 average daily balance, 18% APR:
$1,000 + (1000 * (.18/12)) = $1,015 total balance for period * 4% = $40.60
Look for no annual fees, long grace periods, electronic payment options (stay on time), low interest rates, fixed interest rates. Stay AWAY from cash advances at all costs!
Finally, one secret tip you can ONLY find out by listening to today's show - why making one big monthly payment isn't as good as making four smaller payments totalling the same large payment.
Check it out at:
The Financial Aid Podcast Web Site
If you have iTunes, visit:
FinancialAidPodcast.com/itunes
As always, please contact me with any feedback, either here, on the show, or on the phone.
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