My fridge costs how much? Understanding Interest
Our easy chart demonstrates the difference between paying a purchase off in full, paying only the minimum payment, and how much impact you can have by paying more than the minimum payment. Our example uses purchasing a new refrigerator at $2,500 at 60 months at 19% interest.
Pay In FullIf you pay the amount in full the first month you receive the bill, you pay NO interest. This means that you would pay $2,500 total for the refrigerator.
Pay only the minimum paymentIf you pay only the minimum payment on a credit card each month, you will pay $1,391.08 in interest alone. This means your refrigerator will cost $3,891.08.
Pay more than the minimumIf you make more than the minimum payment due each month, such as paying double the minimum payment due, you would save significant amounts in interest. By paying double the minimum payment, you would pay only $506.00 in interest. This means your refrigerator will cost $3,006.00.