How much debt really costs you
Erie Times
December 18, 2008
Most Americans recognize that overwhelming debt is a burden, but they aren't always good at anticipating how much their spending will cost them.
According to a financial literacy survey by the Center for Economic and Entrepreneurial Literacy, which advocates personal finance education, just a quarter of adults knew that overdrawing their checking account (bouncing a check) for a quick $100 was more expensive than a payday loan, credit card advance or emergency wire transfer. More than half said they thought a payday loan would be pricier.
Understanding the cost of a mortgage was another challenge. Only a third knew that a homebuyer could expect to pay $350,000 in interest for a $300,000 house over the course of a 30-year mortgage with a 6 percent yearly interest rate.
