You've been wanting to buy a new $2,000
big screen TV with all the accompanying
gadgets for ages, and now you can have
it all for only $40 a month. The loan
interest rate is 18%.
At the minimum payment, how long will it
take to pay off?
30 years. And you would have paid
$7,000 for that $2,000 TV.
What if you had put that $40 per month
into a savings account earning 8% over
that same time?
You would have a total of $60,000.
Think twice before making luxury
purchases on credit!