Dec

30

1. Spend what you make

2. Create a budget and stick to it

3. Begin to make more than the 4% required minimum payment.

Will this hurt a bit? Of course it will…but what are your goals?

A) To keep your debt at its present level.

B) To keep increasing your debt.

C) To pay down your debt.

The choice is entirely up to you.

Have a great upcoming new year.

Dec

30

I just read on Forbes (consumer debt) that the average consumer debt is $9,200 per household. As many of us do not carry any credit card debt this number is actually much higher. I personally know too many people that have over $25,000 in credit card debt.

Folks, this is crazy. Carry a balance this large costs you about $368.00 a month if you make the minimum payment of 4% on the balance at 15% interest. If you never add another dime to the card it would take you 10 years to pay the balance down to $324.00, and you would have paid close to $9,000 in interest on the balance.

Think about this. You will have paid $18,000 for items that you probably cannot even find anymore (the ones that are not perishable), and if you could would not even yield 25% of their value at a garage sale.

What can you do?

1. Spend what you make

2. Ceate a budget and stick to it

3. Begin to make more than the 4% required minimum payment.

Will this hurt a bit? Of course it will…but what are your goals?

A) To keep your debt at its present level.

B) To keep increasing your debt.

C) To pay down your debt.

The choice is entirely up to you.

Have a great upcoming new year.

 

 

Blogroll