- Personal Finance»
- Debt & Bankruptcy
Getting Out of Perpetual Debt - Lose the Extra Cost and Baggage
Avoid Perpetual Debt
Getting into perpetual debt is something no one tries to do purposefully, and yet it is a reality for many people. Getting out of debt is hard for some, but it is a very worthy goal. There is a heaviness that comes with owing too much money and it can take away from your quality of life. Many experts agree that credit cards are a person's personal debt enemy, and perhaps the biggest. Credit cards, very often, are the reason why so many people are buried in debt and why the bankruptcy rates have been so high.
Some people get into perpetual debt, a debt cycle that never ends. They will often only pay the minimum payments on cards, or let their bills roll over to the next month. This means lots of money out of your pocket and into the credit card company's or bank's pockets. That is fine if you want to do that, but why would anyone want to do that? Yet it is happening every day. So first things first, pay off as much as you can on your credit cards, as often as you can and stop feeding the debt "monster" in your life. Life is too precious and is flying by to spend it doing that.
What is really going on.
A person that doesn't pay off their monthly balance could be termed a "revolver." They often roll their balance over to the next month, sometimes thousands of dollars. There have been studies done that showed seven out of ten people with credit cards often do this. The average amount they were rolling over was about four thousand dollars or more. Now you can understand why the "cha - ching" sounds (imaginary) in the minds of credit card issuers are going off and they are so "helpful" in extending credit to everyone. Note the sarcasm, they are not really being helpful, but in it for the money.
Without making it plain, this is ideal for a bank or company because you don't have to not pay off your bills, you are just paying more for what you bought a long time ago. More money for the credit card companies and banks. Sorry if it sounds as if I am nagging on them, but it does almost become a case where so many are suckers being taken advantage of, and they don't realize it or perhaps are too busy to care. Thus, the knowing is part of getting out of perpetual debt.
The Reality of the Debt problem, and thinking "better" about it.
You will never have more money than you have, and that seems to go without saying, obviously. The problem is, we often just want more than we have, and live like we do because we are able to due to extended credit. This is someone else or a group of people capitalizing on a personal weakness in people. Do feel badly about it, just take action to keep more of your money that you worked so hard for! You deserve to keep more of your own money, not others that take advantage of people's weaknesses.
Once you realize this, much of
any possible appeal of credit cards will start to wane. We need to look at
credit cards not as free passes to what we want more of, but to be
helpful in rare cases and emergencies. To be fair, I am not condoning get rid of all
credit cards, unless there is simply no self control. In fact, I have a
few credit cards, and I use them and recommend them for times of
traveling and security reasons. They are very helpful in cases of
emergencies and when you don't have time to run to the bank, etc. Just
pay them off fast as you can, or else you are giving to the credit card
banks and companies. If you are going to give away your money, my guess
it wouldn't be there. Give it to people in need of it instead. Once you get completely out of debt, you can apply that money towards investments, and making your money work for you.