As you know, my wife and I are enrolled in Dave Ramsey’s Financial Peace University. She was listening to his radio show and Ramsey opened up the phones to callers to say what their favorite call-in was. Here’s what she heard: One of Ramsey’s callers had just broken off her engagement with her fiance because [...]
As you know, my wife and I are enrolled in Dave Ramsey’s Financial Peace University. She was listening to his radio show and Ramsey opened up the phones to callers to say what their favorite call-in was. Here’s what she heard: One of Ramsey’s callers had just broken off her engagement with her fiance because he was up to his eyeballs in credit card debt. She looked at one of his Visa statements and saw $8,000 in charges to iTunes! What the-? How is this even possible??
Ask Sabrina over at Sabrina’s Money Matters about credit card debt. I bet that dude’s Rocky Theme will end up costing him about $12.75 instead of the $1 he thinks he paid. I hope he’s comfortable all by himself with his 40GB iPod video. I’d rather have someone to snuggle up with at night.
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3 Responses
That caller was SO right! Why on earth would you need to charge $8000 on iTunes anyways unless you’re a DJ!
Charging $1000 and paying the minimum 2% (typical) payment would take 13 years to pay off at a 14% interest rate. So I think we call all tell that $8000 would be a nightmare to conquer.
14%? I don’t use credit cards anymore, but the last one I had was 18%. She was smart to break up with him, I’m thinking.
Or you could do what makes the most sense and pay it off every month…i.e. dont charge more than you can afford.