The society of today is
built on plastic — the “charge and go” kind.
It makes you wonder what people did before
credit cards were invented! With those
plastic wonders has come a mountain of debt.
If this applies to you, to keep that debt
from growing any larger consider giving your
plastic the boot.
Did you know that some credit cards carry
an interest rate as high as twenty-nine
percent? You wouldn’t want an interest rate
that large on your home or car, so why
settle for it on your credit cards? For
those credit card companies that offer a
super low interest rate at the beginning, if
you miss one payment, the interest rate
jumps up to around a whopping eighteen
percent or more. Read the fine print.
Credit cards are a way of establishing
credit. Purchasing items and making payments
on time lets potential credit lenders know
that you are an acceptable risk for them.
Good credit helps people to qualify for low
interest loans on houses, cars, and
furniture.
But that good credit standing can quickly
change if you begin to charge more on those
credit cards than you can possibly pay back.
Interest is tacked on each month that the
credit card carries a balance. It may be
only a few dollars now, but let the balance
linger for a few months and you will see the
difference.
Using credit cards for intangible things
encourages debt. It is convenient to
purchase groceries, gas, pedicures, and
other services on a credit card, but in a
few weeks there will be nothing to show for
it. When the bill comes, the food will have
been eaten and the gas gone from the tank.
There’s no need to get rid of all of the
credit cards. Keeping one card is okay for
emergencies. We’ve all had the odd bit of
car trouble now and then. Or, even worse,
something happens to the heating unit or
something else in the house. A credit card
provides emergency money for the types of
things that are unexpected.
What about the other cards? Cut them up! As
soon as the balance reaches zero, call the
credit card company and cancel them. Be
aware that the representative will try to
entice you to stick around. They may even
offer to up the credit limit. It’s a trap,
so don’t fall for it.
Before there was plastic, people used to pay
with cash. Remember cash? If people didn’t
have enough money, they waited until they
did. We all could take a page from their
book. People are too comfortable carrying
around a boatload of debt.
Get rid of your debt for good. Keep one
credit card for emergencies and let the rest
go. Pay with cash or not at all. If it is
meant for you to purchase a particular item,
then it will still be there in three or four
months when you've got the cash. Recommended Reading
Debt Free
In Three
Thanks to this guide complete with
worksheet and personal coaching, my family
and I will be complete debt free in 42
months (including paying our house mortgage
in full). The principles taught in this
program are simple, yet incredibly powerful.
See for yourself.
Click here to get Debt Free in 3 to 5 years. |
