The Math of Debt
In This Chapter
◆ Simple versus compound interest
◆ Minimum payments lead to growing debt and credit
◆ A “day late”—more than a dollar short
◆ Play by the rules or they’ll change
By this point in the book, you’ve probably gotten the impression that I’m ready to take “debt and credit” out behind the shed like Old Yeller when he caught rabies. In reality, though, it is not debt that I hate. What I have a problem with is the interest and fees charged on debt and credit card balances.
If you could borrow money without truly having to pay anyone for the privilege of doing so, would you? Hopefully you answered yes; in fact, you’d probably willingly choose to be in debt up to your eyeballs.
With your interest-free loan, you’d ...