Debt is not that hard of a concept to grab. You need it, you borrow it, and you owe it back. When you give it back there is no more debt. Now when you throw in the idea of adding interest to what you've borrowed ... that's when the Kool-Aid begins to stir.
Now when you borrow you are required to give back more than you received. If you don't, you pay a monetary punishment with exorbitant fees, late charges, over- limit charges, teller fees, withdrawal fees, deposit fees ... you get the point. Not only do you get the point but you most likely pay most or all of these fees yourself and will again.
Interest rates are ever-changing and with the way the different ways interest is calculated it's not bizarre for a borrower to have to pay several times the amount borrowed just in interest.
How many people use the money on things with substance over the ones with short-term benefits? The ones who choose the latter are obviously paying for something long after the benefits are gone.
Do you even remember what you are paying for?
keeping a list of your debts
Hi,
The very first step in which you can remember what you are paying for is by pulling a copy of your credit report. From the credit report you will come to know what are the debts you have, and if these debts are owed by you. However, if you think that are any such accounts listed on your report that doe snot belong to you, you can dispute that item off your report.
Another way in which you can definitely remember what are the debts you owe, you can make a list of your debts, and maintain this throughout. Whenever, you are opening a new account, you can add that to the existing list. On the other hand when you finish paying off a debt, you can strike that off from the list.
Thanks,
Aaron