As we approach the holiday season, many are already dealing with indebtedness that has occurred as the result of our country’s economic downturn. Before you make your list, check twice to make sure you can pay the bill and the interest!

Paying off credit card and other consumer debt is not difficult to calculate with some help from websites that are not trying to sell you a debt reduction plan. Two easy to use calculators are found at the following websites:

http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp

http://www.free-financial-advice.net/time-to-pay-debt.html

Use these to calculate balances that you already have, or to determine how long it will take to pay off your holiday shopping spree. For example, $2500 that is placed on a credit card with an interest rate of 13%, and a minimum monthly payment of $200, will take 14 months to pay off. You will pay $169 in interest and you will still be paying for this year’s gifts after next years gift giving! By increasing the monthly payment by $50, there is a three-month difference in how long it will take to pay the debt off, and $39 less in interest.

Where can you find $50?????

Remember:

· Eating lunch out every working day costs $140 a month;

· Two treats at the vending machine each working day, $45;

· AngelFoodMinistries.com offers a week's worth of dinner food for a family of four for just $30; and

Being debt free...priceless!!!

To learn more about managing money, contact Jayne M. Cubilla, Extension Agent, Family and Consumer Sciences at the Johnston County Extension office, 989-5380 or you can send Jayne and e-mail at jayne_cubilla@ncsu.edu. You can also listen to Jayne’s radio program “Making Sense” on WTSB 1090 AM, the first Tuesday of each month from 12:10 p.m. – 12:30 p.m.

Related Links

1. http://johnston.ces.ncsu.edu/