Credit Card Debt Management
Credit is not a an alternative to paying for things.
Gas prices are through the roof, home heating bills may double by next winter- even food is costing Americans more than ever before.' Many of us have resorted to using our charge cards, not just for big ticket items like flat screen televisions and vacations; but to cover the expenses of everyday living.' While living on credit seems like the only option in the short term, in the long run it can be disastrous. Especially in light of uncertain economic future.
Paying off one Credit Card Debt with Other Credit Cards
"Borrowing from Peter to pay Paul only works if you can one day Pay Peter too. Otherwise you may find yourself borrowing from Luke to pay Peter, borrowing from John to pay Luke, hitting up Mark to pay John, asking Mathew for help paying Mark.' Eventually you are going to run out of apostles." so says Sean Hawley, Director of National Debt Counseling. "To make matters worse, imagine each time you moved from one biblical bank roller to the next, their interest rates got higher and higher." says Mr. Hawley.
Credit Cards are for People that Know How to Budget
That is essentially what happens when you use credit cards for your daily living.' While not necessarily at the beginning of the process, as many Americans will take advantage of low introductory rate offers, at some point however, the low rate offers will stop and the borrower will be left with an enormous debt on say, 4 maxed out cards with average interest rates of 20-30%.' If the income hasn't changed upwards by this time, the result will be the inevitable "credit crunch", an emergency situation for the debtor- and one that is very frightening.
Avoiding the Credit Crunch
The idea is to avoid the "credit crunch" long before it happens, years perhaps, with forward thinking budget practices and sound financial planning.
"The best thing one can do for their financial well being and peace of mind is to formulate a working household budget and stick to it.' Unfortunately most of us don't do this, and miss out a very effective way of creating a financial cushion" Mr. Hawley observes.' "If we sit down and actually go over all of our income and expenses when we are still okay financially, and honestly take a look at certain expenses that we can cut out of our monthly expenditure, we will be able to set aside some money that we can use for a rainy day"
Read The Entire Article Here: How to Avoid the Credit Crunch, Credit Card Management
How to Avoid the Credit Crunch
If you need assistance with Credit Counseling National Debt Counseling Can Help click here for more Credit Card Counseling Information . If Debt Settlement appears to be a better debt solution for you click here for more Debt Settlement information.
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