By: Jeena Cho

Let’s consider the real impact of making the monthly minimum credit card payment. If you had $50,000 of debt @ 28%, you’d have to pay $2,000 per month for 29 years and 5 months to get out of debt. The total you’d pay is $119,779.73.

Just last week, I met with a client who had been struggling for years to make the monthly minimum payment and not putting any money into reserve.  Unfortunately, when she was laid off, she had no money to pay her rent, or her other bills. This is frequently what drives to file for bankruptcy – not having anything put away for a rainy day. It’s more important now than ever to remember to “Pay yourself first.”

Disclaimer: Unless you have hired us to be your San Francisco or Oakland bankruptcy attorney, there is no attorney client relationship. The information contained in this article is not substitution for legal advice and you should consult with a Oakland bankruptcy attorney about your specific circumstances.