Apr 29 2008
Another Day Older…and Deeper in Debt!
I heard on the radio this morning about a woman with 19 credit cards - $21,000 in debt – no job, on disability, three kids, husband out of work. How bad can it get.
The economy in the U.S. is getting rough. Especially for those with few resources. I understand this woman: how one crisis can lead to another. I’ve been there. And the credit card companies keep throwing pre-approved offers in your path with no or low interest on all balance transfers. The temptation to keep rolling from one card to another is high and the dangers even higher.
Credit Consolidation Companies are everywhere, trying to “help” you out of your pain… but if you read the small print, some of them are no better than Shylock the money lender from Shakespeare’s Merchant of Venice, looking for their pound of flesh. Charging outrageous amounts to “help” you figure your way out of the deep hole you’ve dug for yourself.
Best advice I’ve heard: cut up the #$%@^! cards. If you have to, keep one for emergencies but put it in a metal can filled with water, and put it in the freezer. To use it, you have to let the can thaw – no microwave! and by the time the ice melts, perhaps that “have to have it” item is no longer such a necessity. Then begin to pay off the card with the highest interest rate. Little by little the debt goes down and in the meantime, you feel a lot better about yourself.
Never had more than a couple of credit cards at a time, but back in the ‘eighties, I got in a little deep, re, the debt thing. Oh, I paid my way out and learned my lesson. Didn’t have another card for years. A few years ago, got a pretty good deal on a MC, and I have been fastidious about not using it much, and making substantial payments on the balance that is there, which isn’t that much. I’ve got one store card, as well, but I pay that off as I go. So between my wife and I, we’re stashing a lot of cash in savings and our 401(k)s.
One of the best blogs I’ve found on the subject of money, with lots of great stuff on getting out of debt and into the black, is http://www.getrichslowly.org.
Rick
theartistexposed.blogspot.com
Thanks for the great link to getrichslowly.org
I guess we all need to learn the debt lesson at least once!
Banks and credit companies need sorting out. They shouldnt be allowed to offer credit to those who obviously dont have the means to pay back what they borrow.
I always followed my parents’ teachings on this one and reserved credit cards for mandatory use only. This includes emergencies, purchases made while traveling, and Internet shopping, simply because it’s next to impossible to buy anything off the Web without charging it. I never use credit cards for daily necessities, entertainment, or recurring bills. That’s what checks and cash are for.