In Over Our Heads
The inability to set priorities, and learning to live within their means, has led to a personal debt crisis for many families today. They are finding themselves so deep in debt that they will never get out, or will end up filing for bankruptcy. Once they do this it will take years to rebuild their credit.
Somehow we have been convinced by advertisers that our life is not complete without all the latest and greatest on the market. It's easy to get caught up in this when you have been given credit cards with fairly high limits. Once you start using them you can reach your credit limit quickly if you're not disciplined with your purchasing priorities.
If individuals take their cue from the government then being in debt is the "norm". If the government feels they can run this way then why not its citizens? The truth is neither the government, or their citizens, should be spending money they don't have.
Consider this: if you have about $3400 in debt on your credit card with an interest rate of 8.99%, and you pay only the minimum of $61 each month, it will take you 13 years to pay off the debt. When you finally pay it off, you will have paid a total of $5,181. If that debt is $25,000 with an 18% interest rate, and you pay only the minimum, it will take almost 18 years to pay the debt and you will have paid a total of $39,916. You could be paying off debt for the rest of your life if you owe more than this.
Credit card companies send out advertisements to apply for credit to every marketing list that they can purchase. Law of large numbers - the more you send out the more potential customers you may get. Some companies approve applications even when it may not be prudent to do so. Let's face it, the more cards they approve, many times with high interest rates, the more money they will make. They are counting on customers to use the cards and pay only the minimum, which ensures you will be paying a ridiculous amount in the end. The longer it takes you to pay, the more money they make.
Not having the right priorities is not the only reason for high credit card debt. Unfortunately, with the soaring cost of living today, many families work hard and still struggle. There are times that they feel their only option is to use credit cards for everyday necessities. Nobody should have to become debt ridden to survive.
Getting out of credit card debt is not easy, but can be done. It takes some personal sacrifice, and a willingness to only make the necessary purchases; living within your means. Put the credit cards away and in time you will find your financial outlook will be much brighter. It's time to stop making these credit card companies rich.
Somehow we have been convinced by advertisers that our life is not complete without all the latest and greatest on the market. It's easy to get caught up in this when you have been given credit cards with fairly high limits. Once you start using them you can reach your credit limit quickly if you're not disciplined with your purchasing priorities.
If individuals take their cue from the government then being in debt is the "norm". If the government feels they can run this way then why not its citizens? The truth is neither the government, or their citizens, should be spending money they don't have.
Consider this: if you have about $3400 in debt on your credit card with an interest rate of 8.99%, and you pay only the minimum of $61 each month, it will take you 13 years to pay off the debt. When you finally pay it off, you will have paid a total of $5,181. If that debt is $25,000 with an 18% interest rate, and you pay only the minimum, it will take almost 18 years to pay the debt and you will have paid a total of $39,916. You could be paying off debt for the rest of your life if you owe more than this.
Credit card companies send out advertisements to apply for credit to every marketing list that they can purchase. Law of large numbers - the more you send out the more potential customers you may get. Some companies approve applications even when it may not be prudent to do so. Let's face it, the more cards they approve, many times with high interest rates, the more money they will make. They are counting on customers to use the cards and pay only the minimum, which ensures you will be paying a ridiculous amount in the end. The longer it takes you to pay, the more money they make.
Not having the right priorities is not the only reason for high credit card debt. Unfortunately, with the soaring cost of living today, many families work hard and still struggle. There are times that they feel their only option is to use credit cards for everyday necessities. Nobody should have to become debt ridden to survive.
Getting out of credit card debt is not easy, but can be done. It takes some personal sacrifice, and a willingness to only make the necessary purchases; living within your means. Put the credit cards away and in time you will find your financial outlook will be much brighter. It's time to stop making these credit card companies rich.
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