Despite the conventional wisdom, getting out of credit card debt is simple. Not easy, maybe, but simple. It requires only one thing: will power. No matter what the amount owed or the APR on the credit cards, consumers can overcome their cash flow problems, avoid the temptation to make unnecessary purchases or buy things they don't need, seek assistance and plan for the future.
Countless companies today offer debt counseling and debt consolidation, and lawyers will even gladly file bankruptcy proceedings to get consumers out of debt that they can't pay off. All of these things are more or less worthless, however, until the consumer learns to curb his or her spending habits. And usually the only way to do that is through will power. Just like sticking to a diet, resisting the urge to spend money you don't have can only be accomplished through personal strength.
And it all starts with the desire to change. A dieter who doesn't really want to look or feel any different won't last long. Similarly, a person who doesn't really want out of debt will find very little reason to stay within a budget. But if the desire to change is strong enough, anyone can overcome seemingly insurmountable obstacles to reach his or her goal, whether that goal is financial independence or a fit, toned body.
Just as will power is necessary to keep from overeating, will power is necessary to keep from overspending and debt consolidation even for a christian. And it's necessary over the long term, not just while at the mall today. Analyzing your current personal financial situation will take will power because it's not something people normally like to do. Will power is needed to approach a credit card debt assistance company. You also need will power and patience for researching the market for the best balance transfer plans. So really, will power is needed for every aspect of credit card debt elimination.
And since this personal, inner strength is the only thing you need to eliminate credit card debt, you can see that it is simple to get rid of credit card debt. Simple, but not always easy. Indeed, it might seem downright difficult to keep yourself from spending money on things you might not necessarily need but desperately want. One way to maintain your will power is to envision the life you will have after you have eliminated your credit card debt. Stay focused on the fact that creditors won't be calling you, that you won't be under the burden of high interest rates and finance charges, that you will have a sound financial future.
Just think about all these good things and build your confidence and your will power to eliminate credit card debt. There is really nothing as powerful as will power. And remember "Where there is will, there is way".
Being able to buy things on credit has allowed Americans to own and enjoy things--often for years--without having to wait and pay cash for them. In that way, the concept of credit has been a boon to experiencing the American Dream. Unfortunately, there is also a dark side to credit--one that can turn the American Dream into a life-destroying nightmare.
The figures are startling. More than 70 percent of American divorces are caused by the stress brought on by financial difficulties, and three out of every four Americans are a mere three paychecks away from having to face potential default on their debts.
But how can this happen in the richest country in the world? The answer is simple: misuse of credit. In order not to become one of those depressing statistics, it's important that you become credit smart--long BEFORE you find yourself in financial difficulty over your head.
Credit Card Debt Costs
First, let's look at the nuts-and-bolts of what credit card debt actually costs. When you buy something using a typical credit card, you will, on average, end up paying more than 130 percent above the actual cost of that item, compared to what it would have cost if you had paid cash. No matter how terrific the sales price may have been, your savings will be more than offset by the interest charges you'll end up paying if you pay by sending the monthly minimum payment to your credit card company.
If you pay the minimum amount suggested on your bill each month, you'll normally be paying 90 percent interest, with only the remaining ten percent going to the reduction of the principal on your balance. It can take years to pay off relatively high ticket items, and you'll end up paying many times more for the item than its original sales price. Yet more than 70 percent of American consumers pay only the minimum amount on their monthly statement and never give any thought to how much interest they'll pay over the life of the debt.
To avoid potentially devastating financial difficulty, and to save money (and possibly your marriage), it's important to become credit smart.
First, pay cash, if at all possible. Second, if you can't pay cash at the moment, ask yourself if you truly NEED whatever you're contemplating at the moment. Perhaps you can put it off for awhile, and then pay cash for it.
If you need the item right away, put it on your card, but when the bill comes, always pay a little more than the minimum amount each month. Even a small amount can save you hundreds, or even thousands, of dollars over the life of the loan. Finally, if you can, pay off your credit card in full each month. That way, you'll avoid paying any interest at all.
Credit card debt can ruin your life and the lives of everyone in your family. Take time to learn how to use it wisely--to improve your quality of life without creating undue amounts of stress.
Both Eric Jilson & Jeanette Joy Fisher are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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