Credit Building Tip No. 11 – Avoid Midnight Profit For Banks

Midnight Payments aka LATE PAYMENTS! Don’t do it! You are burning the Ben’jamins!

I couldn’t believe the statistics that I found behind the national debt level. Credit Cards, Mortgage, Auto, Student Loans, Etc. Etc. the list goes on…

Recourse: https://www.nerdwallet.com/blog/average-credit-card-debt-household/

Do you see what I see?

I see PROFIT for banks. I want to leverage the banks but I don’t want them making an arm and leg off of me. If you take the national average APR it brings you to 15% of that debt. Annual Percentage Rate is profit for the bank and you take 15% of $764 billion and that means $114,600,008.00 in revenue for bank. Grant that the banks employ and keep lights on for their business but $114 billion dollars is a LOT of M-U-L-A. SO when  you make late payments and have to pay an extra fee on top of that….think  of $114 billion dollars in on e year revenue for the banks. Tell me how fun it is to pay that money then. I’m all for businesses making profit. Profit is what stimulates our economy. Don’t let business make unnecessary profit off of your hard earned money.

If you want to geek out over “HOW MUCH?” you are spending on your debt check out this recourse:

You want to calculate the interest on $764000000000 at 15% interest per year after 1 year(s).

The formula we’ll use for this is the simple interest formula, or:

Where:

• P is the principal amount, $764000000000.00.
• r is the interest rate, 15% per year, or in decimal form, 15/100=0.15.
• t is the time involved, 1….year(s) time periods.
• So, t is 1….year time periods.

To find the simple interest, we multiply 7.64e+08 × 0.15 × 1 to get that:

The interest is: $114600000008.00

Usually now, the interest is added onto the principal to figure some new amount after 1 year(s),
or 764000000.00 + 114600008.00 = 878600008.00. For example:

• If you borrowed the $764000000000.00, you would now owe $878600000008.00
• If you loaned someone $764000000000.00, you would now be due $878600000008.00
• If owned something, like a $764000000000.00 bond, it would be worth $878600000008.00 now

Holy math! 😀 But if you do the homework then you understand and if you understand…you spend less! 😀 Make your money make you that and  you will never have to contemplate a late payment again!

We have all been at the starting line of realization in many different angles of life’s experiences that it so kindly offers us. SO don’t worry about what you didn’t know before….use it to focus on what you are going to do now that you know. Youve got this! Tune in every Thursday for fun facts and credit tips. You are on a journey to gain everything you deserve with every fact your discover. One step forward is one step closer buddy!

P.S. When in doubt refer back to my last paragraph because in a nut shell I just want to remind you that you are AWESOME and YOU’VE GOT THIS!

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