Long Term Debt
Personal debt is becoming a greater problem, with over 51% of Americans carrying a balance- and paying unnecessary interest- on a credit card in the last year. According to the same study, "Financial Capability in the United States" by the FINRA Investor Education Foundation, over a quarter of people paid only the minimum payment on some months.
Lack of consumer knowledge about carrying a debt and lack of confidence about one's ability to pay off their debt help contribute to the problem. However, with proper knowledge, a good plan, and determination, anyone can become debt free.
Reasons Not to Carry Debt
Carrying debt has become the norm among Americans, with few consumers realizing how costly it can be in the long-term. If a person has a mere $1,000 on a credit card, doesn't charge another cent, but only pays the minimum (18% interest plus 1% of balance), it will take them 113 months to pay off their debt and they will pay $923.12 in interest alone.
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