Page 49 - Charles Calhoun Book Rich As You Want To Be

It would take payments of $669 per

month for 20 YEARS to pay off that loan

if the interest rate was 8% per year. Are
you kidding me?

And of course, there are other ways to borrow and

get into debt. It is easy and quite “normal” to get

into debt. And while it may be common, it is
extremely unwise and to be avoided if at all

possible. And it is possible. It’s hard to pay off any

debt and get out of debt. The above three examples
are just the most common types.

What would life look like for an average

person who is “normal” and has all three of these
debts? Their payments might look like this:

1. Credit card with $ 10,000 debt would require

a payment of $329 per month for 3 years @
12% interest to pay it off, that is if they didn’t

add more purchases to the account. It is

easy and common to add more purchases.
2. Car loan of $ 27,500 could be paid off at 8%

interest for $667 per month for 4 years, or

$479 per month for six years. Ouch! That
would surely hurt!

48