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Credit Card Debt: One Way To Avoid It
One of the biggest problems people have in these modern times
is Credit card debt, and worst is USA. Simply because there have
always been so many laws and regulations before you could have a
card in the rest of the world, you can't for instance borrow
someone elses card and go shopping because you always have to
show some ID before they accept cards in Europe.
Credit card debt is an ever growing problem in the U.S.
Countless American's are finding themselves in a financial bind
because of their over spending habits. Credit cards are a
dangerous convenience to those who tend to impulse buy.
Recent statistics in regard to credit card debt are
staggering. According to The Motley Fool Credit Center
(http://www.fool.com/ccc/secrets/secrets.htm) total U.S. consumer
credit debt has reached 1.7 TRILLION dollars. Collectively, these
card holders pay over 50 BILLION dollars in finance charges,
every year.
It is said that, on any given day, approximately 78% of the
nation's population would qualify for some type of credit. More
than 1.3 million of these card holders will file for bankruptcy,
each calendar year.
Credit card companies are as lenient as they can afford to be
when it comes to issuing new credit cards and spend MILLIONS of
advertising dollars, each year, singing the praises of their
specific offer.
They count on the fact that the majority of card holders will,
indeed, possess an impulse buying gene. These companies also hope
that card holders who apply for a line of credit, to be used only
on an emergency basis, will give in when tempted with appealing
merchandise.
If you suddenly find yourself struggling with credit card debt
there are things you can do that will help to ease your stress
and reduce your balances. These common sense steps will assist
you in getting your credit card debt, under control.
1. Stop using the cards - this is the simplest way to start
reducing your debt. Yes, you still owe for past charges, but
cutting up your cards or putting them away in a secure place,
will alleviate the urge to purchase things that you don't really
need.
2. Stop new credit card offers - It's always tempting to take
advantage of a new credit card offer, especially if it is
pre-approved. You can easily obtain the forms needed to remove
your name from credit bureau lists, by calling 1-888-5OPTOUT.
3. Always pay more than minimum - Credit card companies offer
low monthly payments for a reason. The longer it takes to pay off
a balance the higher their profit margin. In the long run, you'll
be surprised at what a savings this will make.
Credit is a wonderful thing if used wisely. Don't become one
of the millions of card holders who are struggling with debt. By
setting limits and avoiding un-needed purchases you will stay on
the road to healthy credit.
The obvious alternative is to use a prepaid card, that way you
can never use more money than you have loaded to your card.
© Gunnar Berglund>br? Gunnar Berglund has been working
on the Internet for about five years and run http://www.global-prepaid-cards.com
since September 2003.
MORE RESOURCES:
Credit - Google News
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One of the biggest problems people have in these modern
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