Page 47 - Charles Calhoun Book Rich As You Want To Be

of zeros. If 100 million people owe that total

it means the average debt is about $ 11,000

each. And that means that if the interest rate
is 20%, the balance will grow by $2,200 per

year for each person even when no new

purchases occur. And new purchases do
happen, sometimes daily.

People are encouraged to use credit cards

by banks, retail stores, TV commercials

and in other ways. These companies
make lots of money when people use

these cards and take on debt. This is a

perfect example of how it is easy even
seemingly fun to go into debt. But it takes

hard work to get out of debt.

2. Car loans are used to help people buy
new cars. New cars are very nice and fun

too. But they are expensive. It is common
for a purchaser to borrow money to pay

for the car and then pay it off over 3,4,5,

or 6 years. New Cars are fun but car loan
payments are no fun. They also use up

your money which might prevent you

from saving and investing and building
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