ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

credit card debt avoidance

Updated on May 8, 2011

 How to avoid credit card debt has recently been the major concern of many household. The truth of the matter is that a lot of people do not know what to do in order to avoid being trapped in credit. This hub is written to give you some sound financial management tips that when applied will help see you and your family out of the credit crunch that you might think will never be over.

WHY IS MY PERSONAL FINANCE POCKET LEAKING? THEREBY CAUSING ME TO GO BANKRUPT

There is this African saying “you cannot go to the stream with basket and expect to come back home with water”.

Same goes to personal finance and debt management. A lot of people struggle to come out of debt and still blindfold themselves from the cause of their problems.

You must surely go bankrupt over and over (within the limits of the law) as long as you don’t amend your spending pattern and habit.

Credit card marketing company and their agents fine tune their marketing strategies to help you go further into debt. They offer mouth watering bonuses like; spend up to xyz amount in one week and have your interest rate cut by xyz rate.

They encourage you to keep accumulating debt and inviting bankruptcy and its uncomfortable and unpalatable consequences by accepting to be kept at bay with minimum periodical debt repayment.

These credit card companies and their agents forget or intentionally fail to educate you on the phrase “compounding interest”. They subtly hide their effective interest rate from you and still encourage you to create more holes in your personal finance pocket.

Many young people get into debt they cannot repay in the next 10-15 years of active work and full employment before they graduate from school. The simple reason is because; the credit card companies encourage them to go deeper into debt. Thereby entangling themselves in what Kiyosaki called rat race or face the reality of the negative psychology of bankruptcy.

The only one easy and stress free way I know to escape bankruptcy and become debt free is to plug the holes created in your personal finance pocket by the forces of “sugar coated tongues” of marketing companies – especially credit card companies.

In this article are some simple advices that can help block those holes in your personal finance pocket if followed religiously. BINGO!

  • Developing a thick skin towards the various strategies that marketers employ to lure you into spontaneous buying.

Learning to say no to things you don’t have need for at the present time will help you stay debt free and remain debt free.

  • Educating your self on the basics of personal financial planning and financial management.

Understanding concepts like; time value of money, future value, present value and annuity will help you understand some of the legal tricks of credit card companies.

  • Having a working budget.

Is as simple as this, hey guys I want to be spending xyz amount every week, month or year and stick to it. The only difference is that you have to put this into writing. You can seek the service of financial planners to help you out on this aspect. In case you don’t know how to go about selecting a financial planner, this article will give you useful insight.

  • Acting as your own personal forensic financial manager.

Of what benefit will it be if you have a wonderfully drawn budget or financial blue print without having it implemented? You will agree with that the aim of drafting a budget and financial plan will be defeated if not acted upon. A little discipline is required here. Nobody will police you except YOU!

  • Throwing away all your credit cards – leaving one only for emergency situations.

This is self explained, if you really want to escape the baits of these credit card companies, one card will be enough for you and make sure it is used only in state of emergencies.

  • Delaying immediate self gratification.

Someone will say “true success is your ability to delay immediate self gratification”. Do not say because your peers are doing it and then jump into it. Always ask ‘does it fit me?’ the fact that your friends are buying cars and mansions they don’t need does not make it right for you to do same.

  • Saving a specified percent of your income.

I recommend that you save at least 15% of your income. And this will smoothly translate us into the last tip I will be giving in this article.

  • Stimulate your appetite for investment.

There are numerous investment vehicles that can safely and successfully drive you to the lifestyle that you so much desired- a life devoid of bankruptcy and bad debts (debts that does not bring you returns).

You can take advantage of this economic recession to buy into (shares of) companies that have potentials.

I have no doubt in me that this article has added more knowledge to your already enriched knowledge bank. So, why don’t you join me in the campaign to making this our generation a bankruptcy/ bankrupt free generation by sharing this article your loved ones?

To your debt and bankruptcy free life!

 

Comments

    0 of 8192 characters used
    Post Comment

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @KwameG so much my brother. Happy to see you here

    • KwameG profile image

      KwameG 

      8 years ago from MS

      Good tips and points

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Karina S.

      you can spread the news, join in the self imposed mass financial eduction programme.

      Thanks for the comment

    • Karina S. profile image

      Karina S. 

      8 years ago from USA

      Great hub, good advice. I agree with you, people should educate themself about personal finance, or they will find themself in financial trouble.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Jonathan Douglas

      hehehehe, you remind me of a story i read a while back about a girl who find it difficult to either face being heart broken or leaving his guy of questionable character.

      Thanks for commenting though

    • Jonathan Douglas profile image

      Jonathan Douglas 

      8 years ago from Canada's Capital Ottawa, Ontario, Canada

      When the holes are not plugged and the compounding is compunding it is almost impossible to either go mad or go bankrupt!

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @luis21same

      there is always money to save, all we need is just self control and discipline. Thanks for the comment

    • luis21same profile image

      luis21same 

      8 years ago

      very good. as long as there is money to save.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @vpolisi

      Thanks for the comment and join in the self imposed mass financial intelligence (bad debt free life) education. Thanks once again

    • vpolisi profile image

      vpolisi 

      8 years ago from Atlanta, GA

      This is great information that people really do need - I see so many people every day who are in so deep they will never get out! Thanks for the great information!

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Petra Vlah thanks for commenting. I equally pray that my message gets them

    • Petra Vlah profile image

      Petra Vlah 

      8 years ago from Los Angeles

      great hub, let's hope people understand and follow the advice

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @twijeez thanks for the comment

    • profile image

      twijeez 

      8 years ago

      this is actually very gud. keep it up bro.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @ngureco yeah, you have the point, people need to be frugal so to say and live within their means. But, at the same time, they still need to be aware of sublte effective rates that these credit card compainies charge them. Thanks for your comment.

    • ngureco profile image

      ngureco 

      8 years ago

      Chinweike, how are you? How is Lagos? Your people are very good in story-telling. I pray and hope last year's rains were good and that the crops did well there.

      And now back to the issue of credit card debt avoidance: If there is one thing we humans are good at, it’s to blame others for our own mistakes. You see people blaming credit card companies for their own mistakes. Credit card companies are in business like anybody else and people already knows that they are not charitable organizations or Red Cross.

      The simple solution is that one should never spend more than he/she is earning. If you find yourself spending more than you are earning, then expect compounded problems with multiplier effect in the near future. And whose fault is it? It’s your fault and you should just blame yourself. But you see the public does not want to be told the truth – if you do, they will not like it and neither will they like you.

      Again, the simple solution is that one should never spend more than he/she earning. If you follow this, then you will never find yourself in credit card debts.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @cashmere thanks for the comment

    • cashmere profile image

      cashmere 

      8 years ago from India

      Good tips for financial well being.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Springboard that is why we need to educate more people. Thanks for your comment

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Drwibble you were lucky to have paid them all, some people are not as lucky and intelligent as you are

    • Springboard profile image

      Springboard 

      8 years ago from Wisconsin

      Back when I was young and in the Navy I made the mistake of getting into debt with credit cards. You don't really realize that until you find yourself paying $500 a month to pay them off...you think, if I could find $500 a month to pay off a debt what did I need the card for in the first place?

    • Drwibble profile image

      Drwibble 

      8 years ago from UK

      Some sound advice here. The only debt I ever had was my student loans but they were paid back with a year of qualifying.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @Tannahill thanks for making me feel among. Infact, you guys are great here. I have never seen such in any online community

    • K Tannahill profile image

      K Tannahill 

      8 years ago from Canada

      Great article - I like your writing style. Welcome to Hubpages!

    • K Tannahill profile image

      K Tannahill 

      8 years ago from Canada

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @prosmentor am equally delighted to meet you here. Seems we've met at Adaloko?

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      @fastfreta thanks for the encouragement. Your children are now in a better position to benefit from it. lol!

    • prosmentor profile image

      prosmentor 

      8 years ago from Lagos, Nigeria

      My Brother, it's awesowe to find you on hubpages. Your article is great. Keep up the good work

    • fastfreta profile image

      Alfreta Sailor 

      8 years ago from Southern California

      This is actually very good. You are a natural. Unfortunately your advice came a bit too late for me, for a number of reasons. This is the kind of information that should be a must for graduation credit from high school. Really, really, good, keep 'em coming.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)