Search
  • Terry Banks

Updated: Feb 17, 2021

Holiday spending credit card statement got you down? Are you one of the many who will be compounding their debt because they haven’t yet paid off the credit cards from 2018 shopping? Well, you’ve got plenty of company.


59% of Americans in the U.S. used credit cards to purchase gifts in 2018. 35% were still paying it off into the 2019 holiday season. So 48 million Americans are still paying off the 2018 holiday debt and may have even added to it in 2019.

It is possible to have a different experience when reviewing your credit card statement in January 2021. Of the folks that used credit cards to buy gifts in 2018, 24% paid it all off before incurring interest. Do you have a plan to show that you care for others without sabotaging your own financial health? Are you utilizing holiday spending tips to decrease your debt burden in the new year?

Give yourself the gift of peace of mind by being intentional and deliberate with your money.

A deadbeat as defined by the credit card company is someone who pays their card off in full and on time every month. BE A DEADBEAT!!!


Utilizing a Financial Coach is like having a personal trainer for your money. Find out if an accountability partner, guide or cheerleader is right for you by scheduling your FREE 30-minute Q&A call.

  • Terry Banks

Updated: Feb 17, 2021

I read an article recently that said that 72-month car loans are becoming the norm instead of 48-months. As someone who hasn’t had a car payment in years who is planning to drive my 2008 until the wheels fall off, I was flabbergasted. 72 months is 6 years! Imagine making payments on a “new” car while dealing with the maintenance issues of an older car. Ouch!

gif

I was curious about what the difference would be on a 48-month car loan and a 72-month car loan.


I was even more curious about the impact that high-interest rates have on those with less than stellar credit.


So, I compared a 48 vs 72 month car loan rates. Check out the calculator below to see the impact that time and interest rates have on a $20,000 car.

On the left is a 48-month car loan rate with an interest rate of 3.6% vs. 15.24%. On the right is the same rate comparison but with a 72-month car loan rate.



Purchasing a car based on monthly payments alone can be deceiving. The 4-year loan with the low-interest rate has a $448 monthly payment and the 6-year loan with the high-interest rate has a $425 monthly payment.

$10,637 of interest on a $20,000 car! In a nutshell, if you have bad credit and a 6 yr loan, at month 72 you just paid for 1.5 cars. So ask yourself, is a 72-month car loan bad? Some with not so good credit should be asking, is a 48-month car loan bad?



In many parts of the U.S. that 10k could have been a 3.5% down payment on a house using a first-time homeowner program. On average, folks in the U.S. are spending $37,782 on new cars compared to the 20k scenario above.


It definitely pays to have a good credit score if you need to borrow money for major purchases.


Utilizing a Financial Coach is like having a personal trainer for your money. Find out if an accountability partner, guide or cheerleader is right for you by scheduling your FREE 30-minute Q&A call.

  • Terry Banks

Updated: Feb 17, 2021


Utilizing a Financial Coach is like having a personal trainer for your money. Find out if an accountability partner, guide or cheerleader is right for you by scheduling your FREE 30-minute Q&A call.

"You can be young without money, you can't be old without it."

 

-Tennessee Williams