Page 26 - Benjamin Franklin\'s The Way to Wealth: A 52 brilliant ideas interpretation - PDFDrive.com

the most socially acceptable form of debt. But it is a debt, nonetheless, with
a monthly repayment of which—again—you should know the exact rate.

Any other loans? Cars? Consolidation loans? Overdraft? Home
improvement? OK, toss them into the pile. Now the nasty ones. Store
cards? Go and find out the interest rate; chances are, you’re in for a very
unpleasant shock.

Finally, don’t forget that anything you don’t pay for until after you’ve used
it is effectively a loan, even if it’s (initially) an interest-free one. If you
have a pay as you go phone then it’s fine, but if you’re on a contract then
you’re already running up a bill you haven’t yet been asked to pay.

When you take into account everything you really owe, you’ll probably find
it a bit of a shock. Personally, when forced to look at my total debts, I find
it best to do so from behind the relative safety of the sofa. Scary? You
betcha, but not as bad as pretending that the debt’s not there and will go
away by itself.

HERE’S AN IDEA FOR YOU…
Some debt can be balanced at less cost; take a look at the interest rates
you’re paying. Start with the store cards, they’re probably the worst. If
you can’t pay them off with cash (the optimum solution), consider
using an overdraft—a much cheaper way of borrowing. Then shred
them.