We are able to be taught loads from easy questions.
Do this one. Suppose you might have $1,000 in bank card debt. How a lot would it is advisable deposit in your financial institution to earn the curiosity to cowl the price of your bank card?
Would it not be $1,000?
How about $5,000?
Or $20,000?
Or $50,000?
Nope, not one in all these solutions is appropriate. For most individuals, it is going to be a a lot greater quantity.
In keeping with the database on the St. Louis Federal Reserve Financial institution, the typical financial institution bank card rate of interest in March was 15.05%. The typical price on playing cards that carried a stability, nonetheless, was extra: 16.61%.
So, in case your card has a $1,000 stability, you’ll pay about $166.10 in the midst of a 12 months.
