Effects of Compound Interest (Tip #2)

This article assumes you have already read the advice in article a1.  If not, please click here to read... article a1

Now, some more points to drive home...

Spending.  To put $100 worth of merchandise on a credit card at the moment, you have to realize that this means your balance will be $100 greater every month until the point where you are debt free.  The following chart illustrates the effect this has in a monthly interest situation.  Compound interest is the effect of interest on interest. 

%Rate Month# Interest Balance
18.5 0   $100.00
18.5 1 $1.54 $101.54
18.5 2 $1.57 $103.11
18.5 3 $1.59 $104.70
18.5 4 $1.61 $106.31
18.5 5 $1.64 $107.95
18.5 6 $1.66 $109.61
18.5 7 $1.69 $111.30
18.5 8 $1.72 $113.02
18.5 9 $1.74 $114.76
18.5 10 $1.77 $116.53
18.5 11 $1.80 $118.33
18.5 12 $1.82 $120.15
18.5 13 $1.85 $122.00
18.5 14 $1.88 $123.89
18.5 15 $1.91 $125.80
18.5 16 $1.94 $127.73
18.5 17 $1.97 $129.70
18.5 18 $2.00 $131.70
18.5 19 $2.03 $133.73
18.5 20 $2.06 $135.80
18.5 21 $2.09 $137.89
18.5 22 $2.13 $140.01
18.5 23 $2.16 $142.17
18.5 24 $2.19 $144.37
18.5 25 $2.23 $146.59
18.5 26 $2.26 $148.85
18.5 27 $2.29 $151.15
18.5 28 $2.33 $153.48
18.5 29 $2.37 $155.84
18.5 30 $2.40 $158.24
18.5 31 $2.44 $160.68
18.5 32 $2.48 $163.16
18.5 33 $2.52 $165.68
18.5 34 $2.55 $168.23
18.5 35 $2.59 $170.82
18.5 36 $2.63 $173.46
18.5 37 $2.67 $176.13
18.5 38 $2.72 $178.85
18.5 39 $2.76 $181.60
18.5 40 $2.80 $184.40
18.5 41 $2.84 $187.25
18.5 42 $2.89 $190.13
18.5 43 $2.93 $193.07
18.5 44 $2.98 $196.04
18.5 45 $3.02 $199.06
18.5 46 $3.07 $202.13
18.5 47 $3.12 $205.25
18.5 48 $3.16 $208.41
18.5 49 $3.21 $211.63
18.5 50 $3.26 $214.89
18.5 51 $3.31 $218.20
18.5 52 $3.36 $221.57
18.5 53 $3.42 $224.98
18.5 54 $3.47 $228.45
18.5 55 $3.52 $231.97
18.5 56 $3.58 $235.55
18.5 57 $3.63 $239.18
18.5 58 $3.69 $242.87
18.5 59 $3.74 $246.61
18.5