Remember this: in order to pay $100 in interest, you must earn about $135.
This, of course depends on your tax bracket and so forth.
A person making $10 an hour will not be able to pay off $10,000 worth of debt with 1,000 hours of labor. It will require closer to 1,350 hours because of income based taxes. That would be 34 weeks, or almost nine months straight full time. Then you still have the interest to work off! So a person in credit card debt at a level equal to half their annual income would need almost a year of wages to pay it off even if 100% of their income went toward the loan balance.
-a-train
Last edited by a-train; 04-12-2008 at 04:30 PM.
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