Question

If you were carrying a credit card balance of $2,000 at a 24% interest rate, what is the interest charge per month on that balance?

Answer 1

I think it is high if you are carrying a balance but interest rates are going up at this time so perhaps not. It is certainly not as high as payday loan rates but anything over 19% is considered high by the bankruptcy judges I practice in front of. You are throwing a lot of money away each month if you are paying this interest rate on money you owe and should try to pay more than the minimum, which usually does very little to pay down your principal or look for another card that will give you a lower interest rate, even for a year, so you can pay more toward the principal. Credit Cards should never be used for long term debt.
13.2K viewsView upvotes · Answer requested by Zachary Norris

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