| How Much Does that TV Really Cost? |
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| Friday, 18 June 2010 08:33 |
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When we come across a great deal on an item that we really like, it can be very easy to decide to put it on the credit card without worrying about whether or not the money is actually in our bank account to cover the expense. After all, it’s on sale! We’re getting a great deal, right? Not necessarily... Say you buy a great TV, computer or other “really-want-to-have-and-it’s-on-sale” item for $1,000, but are only making the minimum payments. Below is an idea of how much you might really pay: If your APR is 9%, you’ll pay $373 in interest.
Total cost = $1,373
If your APR is 13%, you’ll pay $605 in interest.
Total cost = $1,605
If your APR is 21%, you’ll pay $1,124 in interest.
Total cost = $2,124
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