Trim your Debt

I love cappuccinos’ as much as the next person. Think about this. If you are one of those people who are working five days per week and you buy one cappuccino each day on the way to work at a cost of $3.50 per cup, then that is $17.50 per week. If you times that by 52 weeks per year, that is $910.00 for one year or $4,550 over five years.

What is even more amazing is that according to a debt repayment calculator on sorted.org.nz. If you paid $18.00 extra every week that you were previously spending on cappuccinos onto a mortgage of $120,000 at 8.5% you would pay off your mortgage 2 years 6 months earlier and save $14,686 in interest. With that saving you could buy four thousand one hundred and ninety six cappuccinos at $3.50 each. That sure is a lot of cappuccinos! So think about ways that you could trim some of your expenses and then start a debt elimination plan to pay off your debt faster.

Silbo Systems, conduct money lessons for parents together with their children in small groups. For information contact us