Do you want to Become Debt Free In 1/2 The Time? With consumer debt at an all time high it’s time we take control of our finances and get out of the “debt trap”. Do you realize that if you owe $2,000 on a credit card with a 21% interest rate, and you only make the minimum payment each month that you will owe on this account for approximately 19 years and pay a total of $6725.64 in principle and interest?
If you are tired of straining under the pressure of debt, take the following steps and remove this burden in a fraction of the time.
That’s it, just three easy steps. Now I realize that the emotional commitment to make this plan work may not be all that easy, but let me give you something to think about… Remember that $2,000 debt? Yes, the one that took 19 years to pay off. Using this program (without the additional 5% or 10%) we will pay this debt off in about 8.5 years and save approximately $2,387 in interest.
Need a little more motivation? If you were to invest that same monthly payment (the one we were making on the $2,000 debt) at the end of the 8.5 years for the next 10.5 years (you remember, 19 years total) at a return of 12% you would have approximately $10,682.
Interest is a magical tool. Your creditors use it to their advantage all of the time. It can also work in your favor if you properly implement the right program to harness it. If you take the steps mentioned above it won’t be long before interest is working for you instead of against you.
© 2008 AmericanCreditFoundation.org®. Michael G. Peterson is a co-founder and Spokesman of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.americancreditfoundation.org
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