Paying off your credit card balance each month is a good habit to get into. The reason for this is most credit card companies make their money off the members who do not pay off their balance each month.
When you carry a balance each month on a card that charges interest, you can end up paying much more in interest than you may have planned. For example, a $1000 purchase can easily turn into $1300 when you make minimal payments with an average interest rate of 16%. It would also take you YEARS to pay the balance off and most of your payments in the first 3 years would only go towards the interest from the balance carried over each month.
Imagine if every credit card holder only paid the minimum balance every month, but used their credit card regularly for purchases. They would frequently be making interest only payments on their credit cards and be stuck in a never ending debt cycle.
The Possible card is designed to help break this cycle. While we don’t charge interest on our card, we are trying to help our members create the healthy habits that will lead to better financial health overall.
We know there will be times you may not be able to pay off your full statement balance, and that’s ok! We designed the Pay Over Time (POT) plan for these situations.