What is the true cost of servicing debt?
Consider this, our standard file: $50,000 of credit card debt.
If the person would like to pay the $50,000 off in 5 years, they would have to pay an estimated $1,541.67 per month for 60 months.
Therefore, the total payback = $92,500
In order to pay back $92,500, one has to earn an estimated gross or pre-tax income of $132,000. Put the $132k in perspective of a gross $25/hr wage; it equates to a total of 5,280 hours of one’s life, just to pay off $50,000. 5,280 hours over a 5 year period actually equates to 88 hours per month of a person’s life, where they will never see the fruits of that labour for 5 years.
Remember, in order for this plan to work, not a single payment can be missed nor can the credit products be re-used even once for emergency or general spending. Considering the potential for life’s challenges over a 5 year period, making these payments without a hitch could be quite a tall order for most people.
My point is, what is the true cost of servicing debt? And by cost, I don’t mean monetary.
There is a better way.
Terryl Allen of 4 Pillars Barrie can make that happen. Your best option for debt relief may be consolidation, budgeting, or another form of debt settlement. Terryl will help reduce your debt in a supportive and compassionate manner. To learn more call Terryl Allen at 705 812 0578. Before you know it you’ll be saving your pennies and singing all the way to the bank.
4 Pillars Debt Solutions. Details at 4Pillars.ca
