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How APRs Make A Difference
How APRs make a difference
Here is an excellent example of how transferring
your balance to a credit card with lower interest
and no annual fee can save you money can save
you money.
In this example, the monthly balance carried
forward equals $2,500, which is about the national
average for consumers with credit card debt.
| Terms |
Plan A |
Plan B |
| Average monthly balance |
$2,500 |
$2,500 |
| APR |
18% |
14% |
| Amount paid in finance charges annually |
$450 |
$350 |
| Annual Fee |
$ 20 |
$ 0 |
| Total Cost |
$470 |
$350 |
The total possible savings each year achieved
by selecting a credit card plan with a lower interest
rate and no annual fee in this example is $120
($470 - $350).
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