In the world of credit cards, credit debt is all too common. Debt from credit cards can be very stressful, and lead to a very crippling situation. No one is immune to credit card debt, as even students can experience debt with their credit cards as well. With people using their credit cards more these days, more and more people continue to take the plunge into debt. Debt is never good, as it leads to bankruptcy and the destruction of your credit report.
Not convinced? Then continue reading my take on the following:
"Even though getting in credit card debt is simple to do, getting out of it is something that takes a lot of work. Even if you go to an agency or company that specializes in helping people out of debt, it won’t happen overnight. To get out of debt, it will take you quite a bit of time and effort as you get the debt under control and begin the long process of rebuilding your credit."
Joe: Years of owning credit cards only led me to a life full of misery and fear. Well, maybe 'fear' is overrated in my case as I'm still earning an income. But, to be honest, more than 80% of my salary goes to credit card monthly payment. Take note, I'm talking only minimum payment of 5% and at least 7-8 cards, and with credit availability mostly fully utilized! In Malaysia there is a debt management agency called AKPK, set up by Bank Negara Malaysia, for suckers like me. To know more, go to www.akpk.org.my.
"To properly defend yourself from credit card debt, you’ll need to know quite a bit about credit, managing your money, and finances in general. Normally, you can stay out of debt by creating an ideal budget and saving money whenever you can. If you stick to this plan and avoid steering away from it, you’ll normally have no problems staying out of debt."
Joe: True, follow the guru's advice. But, you and I know its not that simple to manage money and creating an ideal budget and saving money when the newest innovative laptop, or the best bargain 42" HDTV, or the next generation Android mobile phone start staring right into your face just inches behind the gleaming glass casing of a gadget superstore in town! Cold shower can't work in this situation..
"If you have other credit cards that you don’t use, such as store credit cards that are known for high interest rates, you should dispose of them. If you have a lot of open accounts, you should look into debt consolidation, which will combine all of your debts into one payment so you can get them out of the way quicker. By using debt consolidation services, you will only have one bill to pay."
Joe: After having suckered into owning 7 - 8 cards, I made several attempts to consolidate my debt but no banks wanted to grant me such privilege. How could they approve application when my existing credit reports blare "high risk" straight into their faces? Easier advised than done. When you're most in need, that's when the banks turn you down. But when you've no need, they'll freely offer you their credit cards!
"When you receive your credit card bill, you should always strive to pay more than just the minimum. If you only pay the minimum amount, you could very well end up being in debt the rest of your life - as you could be paying nothing but the interest. Every month, you should strive to pay the minimum amount and then some. Paying more than the minimum amount will also help to pay offer your credit card bill faster as well."
Joe: I know, minimum payment will only get you to final payment by retirement age, and you don't want that. But nowadays, adding extra amount on top of the minimum also makes no sense as the banks are now charging additional late payment interests that can amount to 4/5 of the financial charges, now that's daylight robbery! Banks have very creative people higher up the management level who are living on the hard labour of the workforce and, as though it's not enough, felt the need to capitalise on the hardship of credit card debtors to supplement their high flying lifestyle! Go to hell! It's free!
"No matter how much credit card debt you are in, you can always find debt management services and agencies that will help you fight back. Credit card debt is very common these days, something many of us have experienced. Although there are ways out of credit card debt, the best way to get out of it is to avoid it all together. If you pay your bills on time and never miss a payment - you’ll always live a debt free lifestyle.
"You can find the best choice of credit cards and pre-paid cards at http://www.creditcards.us/ (http://www.creditcards.us/)"
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