If more Americans understood the real power and potential benefits of paying off their credit card balances, I think many would take action tomorrow. For creditworthy consumers, this should be a financial ‘no brainer’
Costa Mesa, CA (PRWEB) January 19, 2015
Payoff, Inc. (http://www.payoff.com), a company dedicated to improving people’s finances through financial education tools, knowledgeable and encouraging customer success advocates, and the Payoff Loan, which is specifically designed to refinance expensive credit card debt, is announcing its new “Financial State of the Consumer” study, and the accompanying report entitled “Understanding Credit Card Balance Pay Off Options.” (Contact us directly for a copy of the report).
This new report combines market analysis and consumer research to better understand consumer attitudes about card debt, and their options for relief. It also highlights the power of paying off debt and investing the resulting monthly savings.
According to a national credit bureau, there are almost 20 million creditworthy Americans (with credit scores greater than 650) that likely pay finance charges on their credit card balances every month. Collectively, these consumers are burdened with nearly $275 billion in credit card debt.
The average person in this group has nearly $15,000 in credit card balances (including a combination of bank cards, like Visa and MasterCard, and retail store credit cards). Many of these consumers frequently make only the minimum required monthly payments (approximately $388 in this average case). Someone making just their minimum payment on a $15,000 balance would need more than 27 years to pay it off, while incurring over $22,000 in finance charges in the process.
If this same consumer elected to refinance and pay off all of their credit card debt today, using a simple 48-month credit card refinance loan with a 14% APR, like the Payoff Loan, they would pay nearly the same monthly payment ($394) and be debt free in only 4 years. This simple change would save them $18,000 in interest payments and more than 23 years of indebtedness.
49 months after paying off their credit cards, if this same consumer then started investing that $388 a month for the next 23 years, at an average annual market return of 7%, they could potentially accumulate over $250,000. This opportunity is highlighted in Payoff's newly released infographic entitled "Payoff Presents: Save $250,000 for Retirement."
“If more Americans understood the real power and potential benefits of paying off their credit card balances, I think many would take action tomorrow. For creditworthy consumers, this should be a financial ‘no-brainer,'” said Scott Saunders, CEO of Payoff.
Founded in 2009, Payoff, Inc. (http://www.payoff.com) is a digital finance platform delivering empowering products and services that help clients pay off debt and start building wealth. Payoff is backed by other global digital finance leaders, top-tier venture capital firms, and some of the most prominent individuals in financial services. You can learn more about Payoff and The Payoff Loan, at http://www.payoff.com.
If you’d like a copy of “Understanding Credit Card Balance Pay Off Options,” please contact hello(at)payoff(dot)com.