Page 46 - Charles Calhoun Book Rich As You Want To Be

1. Credit cards are plastic cards used to

charge expenses when purchases are made.

When you use a credit card it is easy and
painless to spend money so people

sometimes spend more than they should.

Ideally it is best to actually feel it when you
spend money. That helps prevent

overspending and going into debt. When you

have credit card debt you have to pay back
the money borrowed plus INTEREST.

INTEREST is money charged for using their

money to make your purchase. Interest rates
can vary and can be 8%, 12%, 18%, 22% or

28% per year. These charges can add up

especially if you have a large balance to pay.
It is easy to see a credit card balance grow.

It is easy to want stuff and it can be fun to
buy but not so much fun to pay it back.

Therefore, many people don’t rush to pay it

back. And therefore, the debt will grow by
adding new purchases and due to the

interest that builds up. American consumers

owe more than 1.1 trillion dollars for credit
card purchases. That is

$ 1,100,000,000,000.00. Wow! That is a lot
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