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Unsecured Credit Card Debt And Living Within Your Means
Credit cards can be a blessing or a curse. It all depends on how you use them. They are great if you have an emergency or an unexpected expense. However, whenever you purchase the latest shoes that come out or eat out 4 or 5 times a week you are likely to find yourself with mounting debt on those credit cards.
Unsecured credit card debt is on the rise in this country and reaching an all time high. Credit card companies are making it very easy to get credit. You could have both your credit cards maxed out, but as long as you make that minimum monthly payment, these companies will be willing to extend you more credit.
But, what is the benefit to you having all this credit? Do the credit card companies have your best interests in mind, by giving you all this credit? The credit card companies have everything to gain, especially your interest payments. As long as you are making your minimum payment, these companies are happy, because they are making a substantial amount off of your interest payments.
Having spent time working in the credit card industry, it was obvious that whenever you make minimum payments you are going to be in debt a very time. I have seen individuals that had minimum payments due and $200 and $195 of that payment went to pay their interest charges.
Credit card companies have designed their payment system to keep you in debt. It is up to you to make the necessary changes to get yourself out of debt. It was verbalized that at the beginning of 2006, minimum credit card payments would increase from 2% to 4% of the balance. I have not really seen where that has happened.
Bottom line is you are going to hath to make some decisions if you wish to have a debt free future. You are robbing yourself of your dreams whenever you spend many years making the credit card companies richer. Credit cards have their place. You just have to figure out where it is.
If you have an excessive amount of unsecured credit card debt, now is the time to make a debt management blueprint that wilt aid you in becoming debt free within a reasonable amount of time (5 years or less). If you do not know where to start, there are many non-profit debt counseling agencies that can assist you in starting. Credit cards could work for you, but when they are used for the incorrect reasons, they can be a burden to you for a long time.
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