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Plastic People Eaters

May 17, 2011

I won’t go as far as some and say credit cards are evil, but they are diabolical, conniving, rectangles of greed.  In my opinion, it’s the most dangerous tool in the createmargin family.  Time and time again I hear stories of those who just used a credit card to get through a “rough season,” but they soon realize that rough season becomes a rough life.  Here’s a picture of the average American family:

1.  Credit card debt totaling almost $15,000.
2.  Average APR on that debt – almost 15%.
3.  Annual interest alone – $2,250.
4.  Making the average minimum payment – you’ll be debt free in 31 years
5.  Making the minimum payment, you will have paid $18,230 in INTEREST!
6.  If that same money was invested, you’d have over $810,000 in 31 years! (Then you can buy whatever you want!)

Maybe this isn’t your exact situation, but if you’re carrying credit card balances, you are robbing yourself of your dreams.  Whatever it is that you desire to do, it will be virtually impossible while carrying revolving debt.  This week I’ll provide a game plan for becoming consumer debt free, and help you take a big step toward creating margin and making room for your dreams.  Bank executives already make enough money – I want that money in your pocket so you can make a difference!

Sources:
Federal Reserve’s May 2011 report on consumer credit
The Survey of Consumer Payment Choice, Federal Reserve Bank of Boston, January 2010
Weekly Rate Survey – creditcard.com

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