Ndubuisi 'Andy' Egwim explains why minimum payments on credit cards trap you. Paying 27% interest while hoping investments earn 8-12% is a losing game most people don't realize they're playing. One doctor's marriage fell apart under the debt pressure.
An interesting question was not for him at that point, can I afford this? Back then it had become, can I afford the minimum payment? So with this credit system, just pay the minimum. And most people fall into that rather than paying off monthly. Okay. Those are very different questions. And the financial pressure for this doctor eventually affected more than his bank account. It affected his marriage, sadly. So let's make this mathematical. Imagine you've got a credit card that is charging you 27% interest and you're simultaneously searching for an investment that might make 8%, 10%, even 12%. Think about what's happening. You're virtually guaranteeing somebody else that you pay them 27% while hoping somebody else gives you 10%. The math is not mathing. I've genuinely seen versions of this, and most people don't even think about it. They don't even know how high their credit card interest is.
