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To end credit card debt, quit charging, pay more. BY TERRY SAVAGE SUN-TIMES COLUMNIST. - September 19, 2002
Are you in debt? You're not alone. A new report from the Federal Reserve shows that the nation's total debt - including personal, business and government debt - grew at twice the rate in the second quarter this year as it did in the first quarter.
Our combined debt now totals nearly $19.99 trillion.
The numbers are staggering. Americans now have nearly $700 billion in credit card debt rolling from month to month. And about half of that amount is being reduced by only the required minimum monthly payments. At that rate, it would take 30 years to pay off--and interest payments could total nearly four times the amount originally charged.
1. Don't panic. Here's my two step method for getting out of debt. * Step One: Every month pay double the minimum monthly payment on your credit card. * Step Two: Don't charge another penny.
2. If you can manage these two steps, your credit card will be paid off in about three years, instead of 30 years!
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