Retail sales were down during the 2008 holiday shopping season. Even so, people still spent money they did not have. Now consumers are learning about debt elimination to overcome their personal sagging economy.
The slowing economy hit retailers hard this past shopping season. Many stores depend on the holiday gift giving season for up to 40% of their annual sales. When the December sales don't produce enough revenue, many face the real prospect of closing down in the January.
We see this occurring throughout the country. Retail stores from the local mom-n-pop shop to major national chains are going out of business, or at least closing some of their under-achieving stores.
But holiday shopping still occurred. People still shopped, though just not as much in years past. And when they purchased those gifts, too many were paid for using credit cards, increasing already inflated account balances.
Once again, the monthly credit card statements will begin to arrive in the mail, and the reality of those balances will make their presence known. More people than ever are wondering how they are going to pay those 2008 debt balances, and still survive in 2009.
Unless a person can payoff their card balances within a few months, then the amount of spent on those 2008 gifts will continue to increase as interest on those purchases continues to accumulate. Too many people don't realize that the $500 they spent on holiday gifts could really cost them $600 to $700 once those purchases, plus interest, are paid for.
Unfortunately, most people never really know how much money they are actually spending. Purchases made now, are simply added to previous balances, plus old interest, plus future purchases, plus future interest. A family cannot possibly budget their expenses when they do not know how much their purchases are actually costing them. All they really see is an ever growing debt balance.
When their debt begins to grow out of control, how does a family survive? The first order of business is to put away the credit cards. Make a commitment to live without them. If a family's monthly income is not enough to cover expenses, then some hard, difficult choices must be made on which expenses must be cut out their lives.
The second order of business is eliminating the debt burden left behind. There are many solutions and programs available to achieve this goal. Not every solution is a good fit for every person. Some may try and settle for a lower balance, some people may obtain a low interest consolidation loan.
Many people are now discovering that debt elimination programs are very real. For this to be the right program, you must make the commitment to live without credit cards. It can be done. The interest savings alone could seem like getting a pay raise.
This country has been led to believe that you must have a credit card to live. This is false. Many debit cards can be used just like credit cards. Many people travel around the world, and never use a credit card. Of course, the debit card may only be used if there is actually enough money in the bank to cover the purchases. Do not forget about using cash for your purchases. When you actually see the money disappearing from their wallet, you are less likely to make those un-needed purchases.
This just leads to a very simple concept: If you don't have the money, don't make the purchase. Living by this rule will eliminate foolish purchases, and save money that would be wasted on interest charges.
When you live in this manner, the $500 spent on next year's holiday gifts, will only cost you $500.
Available Now, A Bailout for Credit Card Debt
A bailout for personal credit card debt is available for American consumers. Corporate bailouts make the news as the government steps in to help. But a lesser known bailout will help average citizens get a new lease on their financial lives.
A Credit Card Debt Stimulus Package
A personal economic stimulus package is not in the plans of our government. But you can stimulate your own economy by eliminating your credit card debt.
Leave Your Credit Cards Home to Stimulate Local Economy
Consumers can have a greater impact on their local economy by leaving their credit cards at home, and making their purchases with cash, checks or debit cards.
