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How To Get Out Of Credit Card Debt
If you're like the average person, let me warn you ahead of
time about what I'm going to reveal in the next few paragraphs.
You may be angry after you finish reading this article about how
you've been misled in the use of credit card debt.
The American economy is designed to make you work yourself to
the point of exhaustion, only to build wealth for those very same
companies you work yourself to death for - not for YOU!
The most eye-opening example of this is with consumer debt.
For example, if you purchase your home with a conventional
mortgage, you'll pay about THREE TIMES the amount over the life
of the loan. Think about it this way. It's like taking your
monthly mortgage payment and tripling it, then sending it off to
the bank.
This is how much you will eventually pay back for the
privilege of using their money. So you can see how two-thirds of
the total amount you'll pay your mortgage company is primarily
INTEREST payments. Interest is pure profit for the mortgage
companies and a detriment to your financial well-being.
Ask yourself a serious question - does the Bank deserve to get
so much of your hard earned money? Do you think that they are
doing such an outstanding job that they should be compensated so
well?
This simply means that when you come home from a hard day at
work, you've just contributed to your bank or mortgage company's
bottom line - not yours. THIS IS YOUR MONEY! I'm sure you've work
hard to earn it. You'll most definitely have to pay taxes on
it.
For instance, if you think your mortgage payments are out of
control --consider credit card debt. If you have an average
payment of $5,000 in debt, it will take you over 60 years to pay
that debt in full if you make the minimum payments.
I don't know about you, but I wouldn't want to be retired and
still making payments on credit cards I charged up in my
twenties.
But you know the story, and you've probably heard it a million
times -- the rich get richer and the poor get poorer. It's
certainly not fair and I'll give you an easy way to get out of
debt without loans or debt consolidation programs and more
importantly, stay out of debt.
When you know how to invest the money you're currently
spending on mortgage payments, car loans, credit card debt and
any other type of monthly installment debt, you'll be pleasantly
surprised at how quickly you can become debt-free.
Make a commitment to yourself to find at least 10% of your
monthly take home pay to help you get out of debt. Look for ways
to cut costs. Go over your cable bill, your cell phone plans, see
if it still makes sense to keep your home phone, revisit
insurance policies, etc. and see where you can redirect money to
help you get out of your debt situation.
Now go and gather up your credit card bills, automobile loans,
and any other installment loans you have and total them up. Keep
in mind there's a difference between debt and expenses. Expenses
are things like utilities, foods and taxes.
After you've come to grand total, look at the monthly payments
for each debt. Select the monthly payment that is the smallest
amount. Now, you'll add the money you've "found" to help you pay
down this debt to zero. Once this debt is paid in full, take the
money you were paying on this debt, add it to your second debt,
plus the extra money you found and continue to payoff your debt
in this manner.
It won't happen overnight, but you didn't get into debt
overnight either. Consistency is the name of this game. By
faithfully following this method, it will take the average person
between 5-7 years to get completely out of debt.
Jamie Madison created a consumer website to help individuals
get out of credit card debt. Get
FREE access and step-by-step instructions to help you become and
live debt-free. http://www.zapyourcreditcarddebt.com
MORE RESOURCES:
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