Why You Should Always Pay More Than the Minimum on Your Credit Cards

This video is part of our 2015 #MoneyMinute contest. Click the “thumbs up” below to vote for this video as one of your favorites and check out all the video entries here. Remember, voting occurs daily!

Name: Patrick Long

Website: Payoff.com

Entry Category: Credit and Financing

#MoneyMinute Voting is closed

Patrick: Hi there, Patrick here with Payoff, sharing our money minute tip. Ours is about minimum payments. So we all know minimum payments aren’t actually that great, but seriously they’re pretty terrible. Think about this: Nearly 20 million Americans have about $15,000 on their credit card bills, and if they’re only making the minimum payments it’s going to take them 27 years to pay that off. Twenty-seven years, that’s insane.

Do you know what you can do in twenty-seven years? You can have a baby, and watch that baby grow up to get his PhD. You can fly to Pluto, make all your friends really jealous on Instagram, and fly back. You can get a 27-year gym membership.

Male Speaker: I’m gonna be fit forever!

Patrick: But still never go.

Male Speaker: Eh, I’ll go tomorrow.

Patrick: So no matter what you really plan to do with your time, uh, just stop making minimum payments. Even $30 more can save you thirteen years.