Debt is a major burden to too many families today. Financial pressure is the number 1 cause of friction, fighting, and divorce. The author is putting out a series of articles aiming to help find solutions. Eliminate Credit Debt is one of them.
Half their profit!! – that’s a monstrous sum of money and it comes out of your pocket, if you carry balances every month. The question posed here is, do the credit card companies set you up to guarantee their bank account, and ruin yours?
Sometimes, yes, they really do.
Red Flags to look out for:
They may move the due date forward and forget to advise you. When you pay on-time – you incur late charges. Not very nice is it? Further, they may use your late payment as an excuse to cut your maximum limit. Bingo – you were just under the limit – and now you’re just over. More fees and - no comment.
They may then use the excuse to increase your interest rate and charge it on all existing balances too. Woosh – your minimum payment just shot up.
Next thing you know, your credit debt is out of control.
To avoid digging the hole deeper, the first thing to do now is chop up the card. I’m serious – it’s the only safe way. We all tend to think, well I can make the payment and when better times come, I’ll pay it off. If better times never come, and look at the crisis we are in 2008, then it can take decades, yes, decades to pay off that card!
We all know that rainy days happen to the best of folks. But when rainy days turn into rainy years, it ain’t pretty. So, do your absolute best to stash away a reserve for these unhappy events – job loss, illness, etc. Ideally, we should all have enough to cover 6 months of unemployment. How many of us manage to do it? Almost nobody and we pay the pain.
Our society is built on immediate gratification – I want it now, and what’s more, I deserve it. Just look at the TV ads pounding this message day and night. But, we really should buy it when we have the cash ….. hard? Yes, but true. If not, we pay the pain later.
The only way to sleep at night and keep your hard-earned dollars in your bank account is to eliminate credit debt, so if this article got to you too late and you’re already in the hole, then let me recommend a service I used while learning the hard way (check it out here) http://www.debtclear.com/programs/5148321. By the way, don’t consult your friend who’s worse off than you!! – and do check out your local Better Business Bureau to be sure you’re in good hands.
If you found this article useful, pass it onto your friends. Easier to avoid than cure …
*All information contained herein is for informational purposes only and is not to be construed as legal, financial or tax advice. Consult your trusted professional.
