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Things You Could Have Bought with Your Credit Card Interest Payment
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Posted July 9, 2015
1. Credit cards can be a great financial resource.
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That is, if they are used responsibly. If you are spending too much on a credit card, you won’t be able to pay it all back at once. That means, you’ll be charged interest. With high balances and high interest rates, the money charged for interest grows faster than you’d think. For example: let’s say you buy a pair of $319 designer jeans on your credit card with an interest rate of 8.9% APR. With tax on the jeans, your credit card balance is now at $338.14. If you are making the monthly minimum payment of $15 only, it will take you almost two years to pay for that one pair of jeans and cost you almost $50 in interest alone. Instead of paying that interest, keep your credit card balances low, save up for items, and use the extra $50 for other things such as
2. Books for school or leisurely reading.
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It might not seem like much. But when you’re spending upwards of a few hundred dollars on books for the semester, that money going toward your credit card bill would be nice to have
3. Or, if you’re tired of eating at the school cafeteria…
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Pay off that credit card, and use the money for a nice dinner out or some fresh groceries to stock your refrigerator. $50 could buy one fancy meal or a lot of frozen dinners
4. Use the money to buy a pair of jeans.
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If you still want the designer jeans, buy them. Just save for them first. Why pay extra money for already expensive jeans when you can save for a few months and get the same thing?
5. Spend it on something that’s good for the environment, your body, and your wallet: a bike.
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As an added bonus: when you have 15 minutes to get to your next class across campus, you won’t have to frantically run and can take a nice and moderate bike ride instead
6. Give yourself the chance to dance and sing like you wouldn’t anywhere else.
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Places like the Breslin Center and DTE Energy Music Theatre attract big names throughout the year. Pay down those credit cards, and you can afford tickets to see your favorite artists.
7. Lastly, semesters can be tough. Take a vacation.
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Depending upon where you go and how much credit card interest you’re paying, the vacation could be to another state or maybe just up north. Regardless, a vacation is still a vacation and probably more exciting than an interest payment to a credit card.
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