How to Get Out From Under Your Credit Debt
Many of us consumers continue to struggle to get out from under our credit debt. In fact, the average American is carrying almost $2,500 in credit debt each month. These financial consequences can be critical, and long lasting.
For a consumer paying only the minimum payment of $50 a month on a $2,500 credit card bill, (at the average 16-percent interest,) they are paying off a mere $10 of principal. There’s another $40 being added on in interest EVERY MONTH. So in only one year of paying minimums, they still owe $2,380. Now imagine if the credit bill is $15,000 or more...the word dangerous is certainly appropriate.
Want to do things differently? Want to put your debt on a diet? Try these five super strategies and break your dangerous spending habits today:
Step away from the counter. Give yourself a time-out when you feel the temptation to make a purchase. For an item over $100, put it on hold, and leave the store. Let the idea sit for 24 hours, and then ask yourself whether you really need the item: the answer is likely "no." For clothing and other purchases, put the item on the 10-minute hold rack. Walk away, get a drink or a snack and decide if you really need it or just impulsively like it.
Set goals. Decide how quickly you want to reduce your debt, and how much you can afford to pay down each month - but don’t stop there. Set financial goals that involves "positive" incentives, too, such as savings and vacations.
Start canceling cards. How many credit cards do you really need? Most people need at least one to handle payments that can’t be made easily any other way - and you may need two, depending on where you usually shop or travel and which card is accepted.
Lower your limits. Save yourself the grief of overspending and not being able to afford it. Most people don’t know that you don’t have to accept the maximum credit limit that your issuer is willing to provide. Choose the limit that you’re comfortable with, and tell your credit card issuer - in writing - that you don’t want any automatic increases. That way you stay within your budget.
Consolidate. If you’re dealing with several cards with debt, look for a financial institution and apply for a debt consolidation. This loan at a competitive lower rate will allow you to make one convenient monthly payment that is far lower than your various cards and will give you a fresh start.
Why you should know more about Chinese Medicine?
If you understand why Chinese medicine is superior to occidental medicine, you will be able to solve a lot of problems beside debts.
Identify the source of the problem - Make The Patient Conscious about these problems - Eliminate the problem - Explain to the patient how to avoid this problem - Explain to the patient what to do to put this problem far away for him
Identify the problem (not the source, only the most apparent) - Eliminate (or maybe not) the problem - Give the solution
It’s clear now that in the second case, the patient doesn’t really know the causes of his problem, and he is more likely to fall again in the same situation.
In the first case, everything is done for the patient to understand his problem at the root. He will be able to fight with more weapons, and win while in the second case, he doesn’t know who, and where the menace is coming from...
You must identify the real cause of your debts if you want to be debt free. Now that I explained to you how to deal with any thread, let me explain why so much people have so much huge debts.
The reason is that the interest rate is leading to these situations. It is inevitable, for the growth of the economy to establish interest rates, and to be able to adjust them, when it’s time to do so.
Question: Do you remember the Chinese principle? How do you know that the society based on the interest rate is the most advantageous for people?
Like the commerce is based on justice, interest rate is based on injustice, as we have seen earlier. It is the real cause of debts, and the cause of your problem right now. It is the source.
How commerce is based on justice? You will understand after reading this: You own a product A, and other human being need this product for one of these 3 reasons:
Vital Need (water, foods...)
Solve a problem (the car – train, bus, plane – for long distances;air conditioned...)
Feel Good (beauty products, health care...)
You are exchanging these product A against money. You need that money, and your customers need your products. It is justice because everybody wins.
It is exactly the opposite effect with interest.
Once you understand and start implementing this Chinese principle, you will be able to find even more causes to your problems. See here the inevitable consequence of interest: Master/visa card, Discovery, American Express. Everybody has one, or more.
You are given the right to buy what you can’t buy. What does that mean? It means that without this loan and the interest that you will pay for it, you will normally not be able to buy your car, or your house, or... Unless you win more money, or borrow from someone.
Our subject here is to find the ways to get out of that debt. But the most important is to let you control.
How to Control Your Debts
It isn’t an uncommon thing for a family to find themselves in a large amount of debt with no end in sight. It is easier than ever now to get into a debt trap or lose control of how you spend your money. If you find that you are having difficulty paying your monthly bills or notice that you have dug yourself in a deep hole and don’t know how to climb out of it, one of the strategies that you might want to employ is to seek debt advice.
Credit card bill and some types of loans are the most common way many people end up in debt. It is so easy to get yourself a credit card, start ringing up charges and before we know it end up mile high in debt. It is just too easy, and unfortunately doesn’t take that long, to find yourself in debt the is almost unmanageable. On the opposite end that debt that took maybe a few months to create can take years to become debt-free again.
There are so many ways in which you can obtain debt advice. There are many non-profit and not-for-profit companies that will help you got to your creditors and negotiate a plan that will make them happy while at the same time allowing you to be able to afford to pay off the debt over a period of time you can live with.
There have been countless books written on helping people get out of debt. They are there to teach you things like how to control your spending, how to manage the debt, and strategies on quickly getting out of debt, or even how to talk to your creditors and negotiate a better payment plan.
There are many places where you can turn to for help with credit card debt but beware of anyone who promise you they can do things that don’t seem reasonable, like wipe out your credit card debt instantly, or fix your credit score. Sadly, there are some scams out there that prey on people already in bad money situations and try to take advantage of the desperation they feel in their situation.