Paper or Plastic?

Thought for the day: Why is common sense so uncommon?

Last week I threw out some examples of what your credit can cost you in the long run. This week I've been talking about the advantages of paying in cash. Let me give you another scenario.

If you are carrying a balance on your credit card and you buy a cheeseburger with that card you are in essence financing that cheeseburger. I like to use round numbers so let's say you get the meal deal and it's only five bucks. There was a ten dollar bill in your wallet but you went for the plastic automatically. How much will borrowing the five dollars from the credit card company cost you?

Your card's APR is 20% and you only make minimum payments of 2% of your principal balance each month. Your cheeseburger will cost you $1 every year you are carrying a balance and it will take 26 years and 4 months to pay it off. That better have been one good burger!

Savings tip of the day: Keep your ac running smoothly. Replace filters monthly to ensure your ac unit operates at peak efficiency.