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Word Count: 233 Character Width: 60 Resource Box: Debt-Free For Life
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"The Rule of 72" - Use This Formula & You Won't Want To Borrow Money Again Either
- by Steven Erlick MA
(c) Steven Erlick. All Rights Reserved. http://www.BookShaker.com
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A sure fire way of not borrowing any more money is to look at how much money you are paying for it. As if being in debt is not bad enough, if you owe money then you have to pay more than you borrow. This is known as interest. Compound interest is where you pay interest on the interest and has been called the eighth wonder of the world!
The great thing about interest is that in fact it is a rental payment on using someone else's money. Like most rental agreements, it costs you dearly whilst for the lender it's a nice little earner! The word 'interest' comes from an old French word meaning 'loss'! Sounds an apt description, doesn't it? It is money that is lost to you!
There is a little formula by which you can work out how long it will take for your debt to double. It is called the Rule of 72. If you divide 72 by the annual percentage rate you will get an approximate indication of how long it will take before compound interest doubles your debt. It is a very sobering calculation to do! If you are not keen on formulas then all you need to do is search the Internet for a debt repayment calculator. Enter the amount, the number of years and the interest rate and you will never want to borrow anything again!
=========================================================== Debt is not your fault. Learn how to get out of it and prosper. The acclaimed Debt-Busting Manual "Debt-Free For Life: Prosperity For the Rest of Us" is available here... http://www.bookshaker.com/product_info.php?products_id=115 ===========================================================
Keywords: rule of 72,compounding,eigth wonder world,debt,debt-free,change,transform your life,transform your debt,prosperity,debt free,money,control money,control debt
About the Author
=========================================================== Debt is not your fault. Learn how to get out of it and prosper. The acclaimed Debt-Busting Manual "Debt-Free For Life: Prosperity For the Rest of Us" is available here... http://www.bookshaker.com/product_info.php?products_id=115 ===========================================================
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