Every payday, thousands of Ohioans look at their paycheck and realize that it’s already spent. The cost of living always goes up and for the last couple of years the income for most folks has gone up very little. Overtime is gone yet energy and food costs continue to rise.
Recently, changes in the credit card laws have required the credit card companies to disclose information on the credit card statement that shows how many years it will take to pay off the debt if only minimum payments are made. Take a look at your credit card bills. If you are only making minimum payments on credit cards, it will take you about 40 years to pay this debt off. The amount of interest that we pay on credit card debt is astonishing.
If most of your payment is going to interest, and not reducing the principal, and if you are already tight on other budget areas, it might be wise to think about whether or not your family finances would be improved by filing a bankruptcy to wipe out all the interest and most (or all) of the debt that you have. Total debt relief in 0 to 5 years – or 40 years of mainly paying interest? Which is better for you and your family?
Then how far would your paycheck go?