Danger – Credit Card Debt Can Destroy Your Life!
Today, more than 70% of Americans have credit card debt that they cannot keep up with. If you are not careful, you will find yourself in this group and may have to work the rest of your life to pay off this credit card debt or possibly your children will be left with the responsibility! Do you want that? Of course you don’t! There are two primary reasons that people get into debt, one is avoidable and the other is not.
Some people are placed in a situation where they have lost their job or someone in the family has gotten ill. Either of these situations is often handled by paying bills with credit cards. This is one of the unavoidable situations that many Americans experience. The only possible way to limit this danger is to hopefully have a good savings plan or some type of insurance that can pick up the slack that your primary insurance doesn’t cover.
The avoidable situation involves managing your expenses. There are many people who buy things just to buy them and don’t even know if they really need them. If you used a debit card or a cash card to make these purchases, at least you could not go over what you had in the account like you could with a credit card. Learning to spend only what you have and not instantly borrowing against your credit will go a long way from putting people in danger. Eventually you will reach a stage that you cannot get out of easily.
Imagine that you use your credit card until you have maxed it out. Then you move onto another card and push it to the limit as well. Eventually you can only pay the minimum payments and that may not even cover the interest being charged to the card. Would you borrow $100 dollars from someone and agree to pay back $300? Of course you wouldn’t, but that is exactly what many do when they max out a card and pay only the minimum. Learn to budget or you may find your life ruined from credit card debt!