Six months ago, the ineterest rate on one of my CCs dropped from 12.9% to 8.9%. I calculated an estimate of what the current balance would be if the interest rate had not dropped.
Balance in June: $8,775
Avereage monthly payment since June: $204.17
Current balance if $204.17 payments had been made at 12.9% int.: $8,098
Actual current balance: $7,931
Diiference: $167
Monthly difference: $27.83
The $27 per month difference is not life changing. My balance would still be rounded to $8,000 with or without the 4 percentage point drop. But, the rate drop is helping, and I'll take all the help I can get!
Effect of Interest Rate Drop
November 17th, 2011 at 01:40 pm
November 17th, 2011 at 10:25 pm 1321568702