Getting Rid Of Credit Card Debt
April 24, 2010 by admin
Filed under Credit Card Debt
It is hard to believe that there was a time in life when there were no credit cards. They have actually been around a long time but it was the 1970’s before they actually started to be used by the average consumer. They have expanded until the present when almost everyone has one, along with credit card debt.
To many people, having this card is like a free pass. They can get anything they want just be flashing a piece of plastic. Unfortunately, there is no connection between the purchase and the fact that it is going to have to be paid for later.
Some people have, unfortunately, found themselves thousands of dollars in debt. Making the small monthly payment does not do much when the interest is being compounded constantly. However, in spite of the monthly statements, that show the balance getting higher and higher, many cannot wean themselves away from ‘the card’.
A survey in 2002 showed the total of outstanding credit card debt was over seven hundred and fifty billion dollars. This is a shocking figure when you realize that interest is piling up on those figures every day. However, the same survey showed that only about fifty percent of Americans owed seven thousand dollars or more. Today, because of the economy even more money is outstanding on these cards.
Many card companies charge an annual fee. In addition, those with cards have recently received notice of a huge jump in interest rates, some over twenty per cent. Anyone, using a little math can see what that is going to do to his or her balance on the account.
The individual can reduce credit card debt but it takes time and sacrifice. Obviously, the first thing to do is cut up the card and go strictly cash or debit card. That way, at the end of the month, one might have bills but they will not be on a credit card and soon it can be eliminated all together.
