Be Smart With Money: Don’t Pay Only The Minimum

Being smart with your money doesn’t mean giving up your avocado toast and morning latte.

What most people don’t realize is there’s a number of sinister money missteps that they’re making, like only paying the minimum payment on their credit card.

For example, if you had a balance of $1,000 on a credit card with an annual rate of around 20 per cent, you’d be paying the monthly minimum for a crazy amount of time. Over 25 years and, add to that, over $3,000 in interest.

That could buy a lot of toast and coffee instead of profiting your credit card company.

Use this handy calculator to see much you could save by paying off your high interest rate debt faster.

To discover more money traps and how to correct them, get your copy of Talk Money to Me: Save Well, Spend Some, and Feel Good About Your Money in stores December 17th and available at Amazon and Chapters for pre-order now.

As the Consumer Advocate for FP Canada, I know that financial literacy is paramount to your well-being. Equally important to your long-term success is working with a qualified professional. To find a CERTIFIED FINANCIAL PLANNER® professional in your area that will help guide you on all matters of money, check out this Find Your Planner tool.

FP Canada is a national professional body working in the public interest (formerly known as the Financial Planning Standards Council). FP Canada is dedicated to fostering better financial health for Canadians by certifying professional financial planners and leading the advancement of professional financial planning in Canada.

For more on financial planning and how to get started, watch What is a financial planner? and What is a financial plan?