|
[02:09:25 AM Thursday, May 31, 2007]
A Credit Card Offer Can Cause Debt
You look through any newspaper and the credit card ads scream out at you, offering bonuses, instant approval, apply online, low rates, fee free, air miles, rewards, bad credit and good credit welcome. What they do not tell you in these days of live now pay later is the level of debt you can almost effortlessly sink into.
They tell you that a credit card offer gives you instant spending power and so on. It is the American Way, but it is just the same in the UK. Banks and stores are forever tempting us along this path. But this is a slippery slope as more and more of us discover, everyday, the whole world over.
In America, they say the average family owes $8,000 in credit card debt. This is only based on the standard family, but some owe a great deal more, whilst others owe a great deal less. Remembering this should help you discover how serious a credit card debt problem you have.
You know you will not wave a magic wand and, hey, presto, the credit card debt has gone in a blinding flash, but there are things you can do to help give you psychological and financial peace. You know it took time to get into this situation and it will take even longer to get out of, but with a little thought, and a lot of effort but slowly you will begin to get things back on an even keel.
Examine the Way You Do Things – Then Make A Change. If you use your cards all of the time, change it. Do not just use your credit card for everything you purchase out of convenience or habit. Do make sure that it is only used when there is no other way. Instead of using whichever card you happen to pick up, use only one and leave the others where they are.
This may seem a simple way of putting it, but it is true, if you don’t use credit cards you can’t abuse them. If you have already reached credit limit get rid of credit card, cut it into little pieces, you can’t use it, and so you don’t need it.
A lot of interest is added to your account, as you will see on your monthly statement, therefore if you only pay the minimum that will cover your charges but not actually be reducing your debt. So try to pay a little more than the minimum amount and then you are starting to make headway.
A great way to help is by transferring your current account totals to a lower interest account, but make sure you don’t get tempted all over again.
If you are careful and don’t give in to temptation it will help get your debt back in control. However, if it is a secured debt you could lose your home if you don’t keep up the payments.
The credit card debt syndrome has also brought out a new counselling service designed to help you by contacting the creditors to negotiate lower payments and reduced or frozen interest rates. But please remember that your creditors do not have to agree to this method although most usually do with the attitude that reduced is better than none.
Bankruptcy should only occur when there simply is no other way out of your credit card debt. Though the prospect of being rid of your credit card debt is a reassuring thought, bankruptcy has a long lasting effect in many ways. The ability to obtain credit for some considerable time makes it virtually impossible to get credit anywhere.
It may not look bad to start with but you suddenly find you have to pay in cash for everything and what you don’t have cash for you simply have to do without. If an emergency comes up and you cannot pay then you suffer the consequences.
Once you achieve getting your debt into control keep it that way, do not be drawn in to banks offering bad credit card offers or no credit score promises they only want to put you back into the same situation you have just worked so hard to get out of.
Another point is never again max out your card try to restrict yourself to say half the limit, then you will be in control and not your card in control of you. Credit cards can be useful in emergency or that special treat but remember it is easy to get on the slippery slope of credit card debt but it is a long hard struggle to fight your way back.
The ads will still be there tempting you with instant approval, low rate unsecured credit card offers but they do not have the stress and worry that the credit card can bring to everyone without even trying, the temptation to spend when we know we do not have the cash to back it up is tremendous. But even so you still must resist their offers.
And remember that they can be a great asset if they are used within the confines that you, not habit dictate. You are the controller not the controlled. So in future close your eyes to online credit card offers, lowest rate offers, rewards airmails and any other offer of temptation that you may come across.
|
