ReadyForZero, a tech company based in San Francisco, created an interactive tool to show just how much time and money credit card debt can ultimately cost you.
Let’s say you’re $3,000 in credit card debt. First, plug in the number:
ReadyForZero calculates how much interest you’ll pay if you only make the minimum payments at a 15% APR. You’ll be paying for 17 years!
Next, use the tool to calculate how many popular US purchases—coffee, gas, iPhones—all that interest could buy.
Based on your debt, that’s 3.7 tanks of gas per year. With gas prices soaring, you could probably use the cash.
Finally, use the tool to compare your debt to the national household average, $9,437.
Your debt ($3,000) is well below that, but you still have some work to do.
Check out ReadyForZero’s calculator for yourself to see how it works.
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