home loan finance blog
Are you feeling the pressure of ever increasing credit card bills? Do they seem to be piling up, and you cant even remember what you charged?
Credit card debt is a major cause of over one million bankruptcies each year. The reason is that many people get a credit card without researching and reading the fine print. By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.
Many times credit card companies are partially to blame with their unprincipled tactics, such as offering credit cards to those who really shouldn’t have them in the first place, high interest rates, and fees. However, before you can get out of your financial mess, you need to take responsibility for your own actions. I understand that many times unfortunate circumstances can cause one to become greatly in debt. Financial reverses, such as the loss of a job, or a medical emergency, etc. are often beyond our control.
Many times, however, it is usually a pattern that consists of gradually increasing purchases that eventually add up to a large debt. Today, it is too easy to get into the mindset of “get what you want today and pay for it tomorrow”, without really worrying about how you’re going to pay for it when tomorrow comes. It makes me angry when I see many stores offering easy credit. They tout their offers such as “No interest or payments for a year”. While this may seem like a wonderful solution, think about it … if you can’t afford to pay for the furniture now, how are you planning to pay for it in the future, when the bill comes due?
So many things can change in a year. You have no idea where you might be financially in a year. Plus, things like furniture can receive a lot of wear and tear in a year. What kind of condition do you think the items will be in after one year? How much will they really be worth then?
The first step to getting out of debt is learning to curb your spending. Get out of the mindset that “I can pay for this later.” If you don’t have the cash to pay for it now, don’t buy it. Chances are, tomorrow or next week, you will have forgotten all about it. Many times that “urge” to buy will pass once you remove yourself from the temptation in front of you.
Another tip is to leave your credit cards at home when you go out. That way they are not easily accessible when you have that sudden urge to spend. Getting out of debt often takes a lot of hard work, and a lot of time to get there, but it also involves changing your spending habits.
It is important to learn how to get out of debt and then stay out of debt. If you learn to set goals regarding your finances and spending, then you will find yourself the winner in the game of debt. It is easy to get into debt, but much more difficult to get out of debt … so just remember this next time you are tempted to say “Charge it”!