• # How much is your Debt really costing you?

How much is your debt costing you? Often times, it's easy to get overwhelmed by making monthly payments on credit cards, but do you know how much your debt is actually costing you each year? Here is a simple calculation you can do in just minutes to show you exactly how costly your debts truly are.

To figure your own debt costs, make a full lit of all of your debts, including bank loans, auto loans, credit card balances, student loans, (any thing that you make payments on that you are charged interest!).

Beside each of those amounts, write down the interest rate that you pay for that particular debt. If you aren't sure what your interest rate is, it's imperative that you find out. To figure how much the debt is costing you per year, multiply the two numbers together.

For example:

1. Home Mortgage, \$100,000 - Interest Rate 6% = \$6,000. per year
2. Visa Card \$7,500 - Interest Rate 12% = \$900. per year
3. Car Loan \$18,500 - Interest Rate 7% = \$1,295. per year

In this particular case, these 3 basic debts are costing \$8,195 in interest alone each year. By writing out your debts and using this simple calculation, it's easy to see exactly where your money is going.
1. drea -
This is really basic concept, I don't know why I never thought of doing it before. I added up our debts and we are paying more than 50% of our income in just INTEREST every Year.

No wonder we can never get ahead.
1. 1onabudget -
I hear you!! So now that we can calculate and see that we really wont be getting anywhere for a while with some of our debts....what now? Any advise? Is doing a debt consolidation loan a good idea?

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#### Re: 6 More Tips for Cutting your Grocery BudgetH

When I need fresh veggies I buy them when I need them. Otherwise they tend to go bad before I can use it. If you are throwing food away you aren't saving money.

LyraJean 12-18-2014, 01:55 PM

#### Re: How to save money on groceries

Thank you all for your great tips. After I posted the first entry I went back a read most of the \$50 a week posts. My biggest thing was I couldn't get my mind around it, but it became clearer to me...

lala72 12-18-2014, 12:26 PM

#### Re: How to save money on groceries

Thank you, but my phone cannot use that app.

lala72 12-18-2014, 12:06 PM

#### Re: How to save money on groceries

Thank you, but my cell phone cannot use that app.

lala72 12-18-2014, 12:04 PM

#### Re: How to save money on groceries

don't give up . you are blessed as at lease you can bake and cook , share cost with people you know and if possible buy groceries when on sale and of course use coupons.
Good luck.

pohcstnotna 12-14-2014, 03:26 AM