| I�m in debt what do I do? Options are?
The history of credit cards spans back to the 1920�s. Once used only for emergencies, now used for basics such as groceries, credit cards are the most widely used form of currency. Cash has taken a backseat over the driving force of the credit card industry. Thanks to credit cards many can lead a far better life, buying much, much more than they would ever be able to. But where does the thanks really go? Are we thankful to have more bills? Of course not! The credit card companies owe all the thanks to us. For without us, the consumers, the credit card companies would not be sitting on top of their million dollar mountains. Saturday Night Live did a really funny skit about being in debt. Poking fun at the truth sheds a new light on the consumer debt crisis in America. Though Saturday Night Live ran the lines over and over again with a married couple sitting at the kitchen table. �So, if I want something, I don�t have the money for it, should I buy it?� The narrated voice booms out a big, �No!� �So I shouldn�t charge something I need but don�t have the money to pay for it?� Again, the narrated voice says, �No!� �So, what if we need something, don�t have the money to pay for it, then should we charge it?� �No!� No matter which way you word and reword the scripted lines, the message is clear. Do not charge things you cannot pay for. But this advice may be easier said than done. If we get in a bind, credit cards can bail us out. Credit cards can see us through an unexpected situation. And what if we have a true emergency? It can be hard to live without credit cards. Some may think it is virtually impossible to get along in society without having and using credit cards. What can seem like an insurmountable task, can be broken down into a few simple changes to better your position in life, lessen your debt load. The first step is to take a look at your credit card bills. Are you charging necessities, like groceries, or are you buying clothes, movies, and dinners out? Take a highlighter, and highlight the charges on your credit card bills that you could have lived without. These are the first things you stop using a credit card for. If you prefer to quit cold turkey, stop using credit cards altogether. Use a debit card, or pay cash for everything you buy. Pay all of your bills first, then you know how much leftover you can spend for groceries, etc. The second step is to assess the damage. How much in debt are you? Make a listing of each credit card you have, from gas card, to department store, to electronic store accounts, to regular visas and MasterCard�s. Write your current balance next to each. Total up how much you owe. The third step is to find the card that you owe the lowest balance on. Are you able to pay it off? If not, how much more can you send in? The goal is to start paying off cards one at a time and then canceling them. Working your way through your list, always paying off or paying more on the account you owe the lowest balance on. You can start marking the credit cards off your list as you go. Simplifying your life by having less bills leaves you more of a focus on the bills you have. What about the cards with the higher interest rates? Shouldn�t I pay those off first? From experiences working in the credit card industry and working in collections and helping people one on one with their debts, this is the proven way. The reason is if your higher interest rate card has a high balance, it will be harder to pay it off. Working through your list one card at a time, shows you results, and makes you more motivated to keep on going. If you have ten credit cards and have a few with really low balances, you might be able to pay off, say, the lowest three at once. You close those three accounts, and now you only have seven credit cards left. You have three less bills coming in per month. Your life is a lot simpler. You save money on stamps, and on your time from sitting down and paying a stack of bills. What if there is no extra money in my budget? Even if your budget is tight, there are still many things you can do to better your situation. There might be a few extras within your budget you can cut out, like cable or a cell phone. Maybe a few trades you could make, like switching from High Speed Internet to a cheaper Dial Up Internet service. There are also many ways to make money with what you already have. There are many free articles on this website that speak of just that, making money with what you already have! Plus, there are lots of ways you can earn free Wal-Mart Gift Certificates online without purchasing a single thing! See the E-Book, Let the Internet be your ticket to free items!. Free Articles: Cleaning out my closet on E-Bay earned me over $1000 in 4 weeks Christmas Creativity, how not to go in debt this year I made over $100 selling my old CD�s and DVD�s to a new website |