• intouch magazine | #04 | september 2015

The REAL Cost of Debt

There’s been a lot in the news lately about the pitfalls of zero interest balance transfer credit cards. Studies have shown that many people who take up these “saviour” offers end up with double the debt and, after the interest-free period expires, a high-interest credit card. (Tip: if you do go down this path make sure you cancel the original credit card so you aren’t tempted to use it once the balance has been transferred).

This is just one cost of debt (more debt) – but do you really know what it costs you to be in debt? Are you thinking that you can handle it or is it getting you down?

In fact, debt is a lot like smoking. When you start out, you believe you’re in control and you can quit at any time. As the months and the years roll past, this initial belief does not fadeaway. With every debt you incur, the mantra “I can afford this” repeats itself in your subco