Everyone is probably familiar with those disclosures on your credit card statement. That will usually say you have 27 years to pay off a debt, if you make the minimum payment. People might not be aware of it, but our credit debt as a nation comes with a disclosure. The minimum payment option is bad because you accrue a lot of interest that way.
- America’s “credit card”–our national debt–clearly, any credit line expanding this fast will bankrupt the borrower, regardless of their income.
- According to the Grandfather national debt chart with the USDebtClock data, the annual interest bill is $3 trillion.
- About 80% of the population are net payers of interest while the other 20% are net receivers of interest.
“Governments cannot reduce their debt or deficits and central banks cannot taper.”