New rules that came into force last month require your credit card provider to show a ‘Minimum Repayment Warning’ – how long it will take to pay off the bill if you only pay the minimum amount – 75 years for this balance of only $11,800 on a Westpac issued American Express.
The second figure that is now mandatory on all credit card bills is how much you would have to pay each month to settle the bill in 2 years.
These new rules will help consumers to understand why you should never borrow money on a credit card.
Ransom note
The holder of the above credit card would be 115 years old when he finished paying this bill in 75 years time. “Having trouble making payments?” – indeed!
So don’t borrow money on credit cards.
