A Credit Card--NIGHTMARE
Sun Hi and Joseph Kim got their first credit card a week after they got married. At first, they paid off the balance every month.
The couple's problems began after they bought a new house. They bought new furniture, a big-screen television, and two new computers. To pay for everything, they applied for more and more credit card. Soon they had six different credit cards, and they were more than $18,000 in debt.
"It was a nightmare!" says Mrs. Kim. "The interest rates were 19 percent to 24percent. Our minimum payments were over $750 a month. We both got second jobs, but it wasn't enough. I was so worried about paying off the debt, I cried all the time."
Luckily, the Kims found a solution. They met Dolores Delgado, a debt counselor. With her help, they looked at all of their living expenses and made a family budget. They combined their six credit card payments with a lower interest rate. Now, their monthly budget for all living expenses is $3,400. Together they earn $3,900 a month. That leaves $500 for paying off their debt.
"We've cut up our credit cards," says Mr. Kim. " No more expensive furniture! In five years, we can pay off our debt. Now we know. Credit cards are dangerous!" (225 words)
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