Go Big for Grads
With expenses up to $3,000, could your graduation party earn you a degree in debt?
No one is arguing that graduation is a really big milestone that should be celebrated. It is and it should be. On the other hand, when you see a potential price tag of up to $3,000, it’s easy to get nervous that a need to go big for graduation may be leading many households into serious problems with debt.
Whether you’re marking your kids’ graduation from high school or college, helping a spouse celebrate the completion of a push for continuing education, or throwing your own bash for your degree, it’s important to remember that the festivities are going to come at a price. What’s more, if that price is charged on a credit card, it’s going to cost you even more with added interest.
We did the math using a credit card debt calculator to see what the real damage would be. At an average 13 percent interest rate on a standard payment schedule (2 percent of the balance), you’d spend $2995.14 on interest charges and it would take over 18 years to pay off making minimum payments. With the money and time wasted, you could raise another kid to graduation age and throw another party!