🙍♀️Meet Lisa.
Lisa’s a 34-year-old teacher living in Melbourne’s southeast. Like many Aussies, she got a credit card years ago to help manage unexpected expenses and the odd overseas trip. Fast forward to now – her card has a $5,000 limit, and she’s carrying a balance of $3,800.
The kicker? Her interest rate is 17%, and she’s only been making the minimum monthly repayments.
So we asked the question: If Lisa continues paying just the minimum each month, how long will it take to clear that $3,800?
The answer? A jaw-dropping 26 years and 4 months.
Yep, that’s over three decades of paying off one holiday and a few online purchases.
And that’s assuming Lisa doesn’t use the card at all in the meantime. One small emergency or a bit of spending and she’s back to square one.
And that’s assuming Lisa doesn’t use the card at all in the meantime. One small emergency or a bit of spending and she’s back to square one.
💡 The Real Cost of Minimum Repayments
Most credit cards only require you to repay 2–3% of your balance each month (or a flat $20). Sounds manageable – but here’s the trap:
The interest keeps piling up
You pay way more than you borrowed
And you stay in debt way longer than you planned
🙌What Lisa Did Instead
Lisa came to chat with us. We looked at her overall situation and helped her: ✅ Consolidate her credit card into her home loan
✅ Pay off the card at a much lower interest rate
✅ Set up a plan to get on top of her finances for good
✅ Pay off the card at a much lower interest rate
✅ Set up a plan to get on top of her finances for good
Now, Lisa is saving money, reducing her stress, and finally feeling in control.
💬 Moral of the story?
Don’t let a few thousand dollars trap you for the next 20+ years. If you’re only making minimum repayments, now’s the time to act.
Let’s have a quick chat and see if we can have you on your road to financial freedom – Click here to enquire
Disclaimer:
This is Lisa’s story. While every effort has been made to accurately reflect her experience, individual financial situations vary. Outcomes depend on a range of factors including income, expenses, debt levels, and lender policies. Always seek professional advice tailored to your personal circumstances before making any financial decisions.
This is Lisa’s story. While every effort has been made to accurately reflect her experience, individual financial situations vary. Outcomes depend on a range of factors including income, expenses, debt levels, and lender policies. Always seek professional advice tailored to your personal circumstances before making any financial decisions.
