HPAL Tip of the Week:
Avoid making large credit card purchases unless you can pay more than the lowest monthly payment.
If you paid 2 percent each month of a purchase that’s $2,500 on a credit card, it would take 334 months to pay off the debt. In other words, it would take 28 years to pay off a $2,500 liability. The accumulated interest over 28 years means you would pay approximately $5,897 in interest, meaning your true cost for the item is $8,397. Unless you’re prepared to make larger payments than the minimum each month or there’s a no-interest plan, avoid making large credit card purchases and pay cash instead.
You are encouraged to use these weekly tips on your website, social media pages or in other communication with your members to illustrate one more way credit unions help people afford life. If you have a tip you would like to share with the HPAL Listserve, please email to firstname.lastname@example.org. When replying to this email or sending an email to email@example.com, it is sent to everyone on the list.