This post is explaining how to summarize debts from real case example.

Let’s say you owe $5,600 on a credit card with a 18% interest rate, and you only make $100 payment each month – you will owe on this account for 124 months and pay a total of $6,708.54  in principle plus the 54.5031% of interest for the payment.

You have 3 debts:
- Home Loan
- Credit Card
- Car Loan

Home loan – amount of $36.000 plus 14% interest rate, $3500 for the credit card plus 18% of interest and $21.000 for the car loan with %10 of interest.

The problem is that many people make a mistake and simply calculate the debt period/time and payoff their debts, without understanding what happens behind the scene.

These posts will explain in more details how to do this:

A table with typical debt case – summarizing the debts

And how to fairly calculate your debts

Before we talk about eliminating the debt slavery, please make sure to stop the growth of your debts.

Do that right now!

Pay off your credit cards debts, ASAP.

Learn to calculate interest.

Check the interest rate.

Get switched to one card.

Pay in cash, hide the card as deep as you can.

These are the things that you need doing right away, so that the sum of debts at least stops growing like a snow ball.

We also invite you to join the online discussion about debts and debt help – spread the knowledge, help the people.

There is no magic in this issue, but – heck – then why do so many people get into debts? In all countries over the world! Daily!!

The answers are:

It is easy to borrow.

Yes, just like this. Smart egg-headed financial gurus made everything possible to make money borrowing easy. So that the prey comes into the trap without any problems.

People get fooled.

Some credit cards do not offer interest rate for a limited time. And when that period is over this can be about paying double the main rate.

One can think to be in control of debts.

Whereas this assumption has nothing to do with the real status of things.

This is not the ultimate list, but – believe it or not – best financial minds are playing against you to setup a system where you and your kids will be paying off the debts.

You need serious knowledge to break this vicious cycle. Competent debt solutions and advice can be found among free debts tips.

What Exactly is Debt?

Simple answer – the money you owe. In a more formal and realistic way we can also add – an amount of money or other property that is owed by one person, organization or company.

Getting into debt is very easy. Surely the people are happy to buy without having cash, and they can afford to get a car even without having the budget etc.

But they will live and drive this car for 12 years to make payments and pay huge interests – this is already something that should come into interest

Join the online discussion about debts and how to eliminate debts faster. Share your opinion about the problem!