The rule of 72 says that is you divide an interest rate into 72, you get how many years it will take to double your money. So if you were getting 10% interest, how many years would it take to double your money if you left the interest there to compound? 7.2, right.
How about if you got 1% interest? 72 years!
So if you were paying 18% credit card interest, how many years does it take for the credit card company to double their money off you?
4 years.
1,296 years.
They shall never make any money off me.
I pay my cards off every month!
I wish i did’nt need a credit card at all.
Been preaching this rule since I learned about it 10 years ago. Thank you for sharing!!