Debt Payments

The other day I read in a magazine that the average American under the age of 35 spends roughly 20 cents of every dollar they earn to make payments on debt. That means that 20% of every dollar they make is already spent. That is bad. I started thinking that this probably won’t get any better because people are making less and less money during these hard times. Plus, credit card companies are raising their rates and fees for many of their card members.

Try not to use your credit card unless you know you will pay it off at the end of the month. If you do have credit card debt, pay down the debt as much as you are able, even if it means paying just $10 towards the principal each month. That will allow you to get out of debt faster and become financially free faster, too. When you’re debt-free every dollar you earn will be 100% yours.

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2 thoughts on “Debt Payments

  1. Jake Stichler August 11, 2009 / 7:28 am

    If they’re only putting 20% of their income toward their debt, they’re not trying hard enough to get out of it!

  2. Sam August 20, 2009 / 6:24 pm

    You’re a smart kid. Family economics should be simple. Don’t spend more than you make. Don’t even spend an equal amount of what you make.
    keep up the good work.

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