In 2012, Americans overall credit card debt decreased while school loan debt increased. The average credit card debt was $7884 and the average household debt was $22,899* but most people still dream about living a debt free life. In this assignment, you will take a real look at your debt and how long it could take you to eliminate it.

For this assignment use the CNN Money Calculator. Put in your debt (credit cards, mortgage, auto loans, student loans, personal loans, etc.), put in the amount of time you would like to have the debt paid off by or you could choose to use the minimum monthly payment you plan to make. Note: If you do not currently have any personal debt, use the fictional debt below to complete the assignment.

DEBT BALANCE INTEREST RATE MIN. PAYMENT VISA $3996 9.9 $65.00 STUDENT LOANS $10,500 6.5 $75.00 AUTO LOAN $16,589 7.3 $400.00 BEST BUY $2500 23.99 $100 WALMART $1265 16.99 $45.00 The calculator will do the rest and tell you how long it will take you to become debt free.

Next, answer the following questions: Will it take you longer than you thought it would to pay off your debt?

Did you have any idea how much interest you would be paying?

Are you still willing to pay only the minimum payments?