Financial Debt Solutions » credit card debt

How To Get Out of and Stay Out of Credit Card Debt

admin — Tue, 07 Sep 2010 05:43:39 +0000

Bankruptcies in excess of one million annually are a result of credit card debt alone. The number one cause of this is the fact that many people secure a credit card without bothering to read the fine print. As is often the case, they often use their credit card without thinking too much about it. The end result is a credit card balance that is much higher than the owner of the card can afford to pay, even monthly. This creates a real payment dilemma, especially when late fees and the going interest rate are tacked on to the bill.

Even though we feel that it isn’t all our fault, the fact of the matter is we are the real cause of this financial mess we find ourselves in! It is also a fact that the credit card companies will have nothing to do with our little blame game. They simply point to the contract and expect to be paid back, with interest.

There are times when a bargain will come along and, with the freedom and flexibility that can come with a credit card, we can take advantage of the sale price. However, take that to the next level and allow those sale item prices to draw us into a spiraling downward of using the card too much, and it’s ‘Houston, we have a problem’!

Having said that, if we are willing to admit we need to get control of the situation and start seeing what we are doing for what it is, we can turn the debt scenario around. It will require great willpower though. The first thing to do is to stop any unnecessary spending. The second thing to do is to start paying down the existing debt, and this may take some time. Keep in mind though, you probably didn’t get into this hole overnight and it will most likely take some time to dig yourself out!

Making contact with your credit card company is a great thing to do. You can set up an appointment to begin dealing with your debt. You will most likely find that they are more than willing to work with you, if not to help you with your financial dilemma, then to at least start getting their money owed. Do what you can to establish a payment plan and then stick with it. There will be times when this will be hard to do. However, keep reminding yourself why you are doing this in the first place. It is to get out of the debt you placed yourself in and to save some money along the way in interest payments and late fees.

Once you have begun turning this debt situation around and can start seeing some light at the end of the tunnel, you will begin feeling better about yourself and begin to breathe a little easier as well. At this point, it is okay to give yourself a big pat on the back. One thing you don’t want to do is go backward! It is always much easier to go into debt than to get out of debt but, in the end, getting out of debt and staying out of debt is the only real way to go. It will be worth it!

For the time being, let this be your motto: If you can’t pay cash and you don’t really need it, don’t buy it!

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Settling Credit Card Debt: A Good Idea?

admin — Wed, 25 Aug 2010 18:36:34 +0000

Prior to entering into a debt settlement agreement, you might want to think it all the way through. The reason? Those promises of eliminating 70 percent of your debt in the next 24 hours, or getting rid of your credit card balances without damaging your credit score may be just that: promises!

With the economy slogging along, unemployment at nearly 10 percent and rising credit card delinquencies and defaults, the trumpeting of many debt settlement businesses offering their services to help you settle your debt load are increasing. You may even know someone who has been able to settle their own debt burden for pennies on the dollar. As such, you may be asking yourself: why not me?

The fact is, it is not as easy as it may seem. In fact, the following eight myths may reveal that, unless you are truly in financial difficulty, it may just be better for you to stay the course and pay off your debts the old-fashioned way: one debt at a time.

Myth No. 1: It’s Easy For Anyone To Get A Credit Card Balance Cut In Half.

The fact is, with so many people rushing to get their balances reduced, there is an actual waiting list! Unless you are really experiencing financial hardship, it is highly unlikely you will get a huge amount of your credit card debt forgiven. Most credit card companies operate on the premise that, if they discover you are gainfully employed, they view you as able to pay back the debt. Thus, the time and effort spent trying to get your credit card balance reduced will not be worth it. This can be softened when hiring representation though. If you consider going this route, you may want to consider myth number two:

Myth No. 2: I Need Professional Help Settling My Credit Card Debt.

In this day and age of the Internet, it is not all that difficult for someone who is computer literate to do the research on their own and find the resources to educate themselves on what to do when it comes to seeking financial assistance. If done right, you can save yourself some real money while pursuing debt settlement relief.

Once you have the facts in front of you, it is possible to negotiate with your creditors yourself. In fact, there are an increasing number of credit card companies that would rather negotiate directly with the credit card holder than to have to go through a middleman. Not only does this type of negotiating bog down the process but it siphons off some of the money to a third party.

However, if you are uneasy going about it in this way, do yourself a favor before hiring someone to represent you: research the representative as best as you can before contracting with them to do your dirty work! Make sure they are reputable and trustworthy. After all, they are speaking for you and getting paid to do so. You want them to do the best job they can to reduce your debt without harming your reputation! Keeping this in mind, let’s go to myth number three:

Myth No. 3: All Debt Settlement Companies Look Alike.

The truth is, debt settlement companies are all over the map when it comes to whether they are trustworthy or not. As a result, it is wise to stick with the ones that belong to an association, such as The Association of Settlement Companies. Members of associations such as these are held to standards established in the bylaws. This is a good watchdog way of ensuring you get reputable representation through the debt settlement company you choose to go with.

One of the best ways to determine if the debt settlement company you decide to go with is on your side or not is the degree with which they allow you to control your monetary situation. For example, if they advise you to stop making payments on your debts and start sending those amounts to them instead, that could be a red flag not to continue doing business with them. They will tell you that this is a way to leverage your creditors to settle by holding back the money. However, it is just as likely they will simply take the money and not follow through with the remainder of the negotiations with the credit card companies, leaving you holding the bag!

When going with a reputable debt settlement company that is a member of TASC, this would never be recommended as an option. That leads us to myth number four:

Myth No. 4: Money Sent to the Debt Settlement Company is Secure.

Keep in mind, the money in a debt settlement company’s account is not FDIC insured like a bank or credit union would be. As a result, many trusting souls have done what their debt settlement company suggested with devastating results. They quit making monthly payments to their creditors, sent the money to the debt settlement company instead and ended up not only losing their case to lower their debt load but the money they sent to their representative’s business as well!

Worst case scenarios have seen the company either go out of business or even abscond with the money. Other negatives could include not receiving interest on the money, them mismanaging your money, or even offering a debt settlement recommendation not in your best interest. As a result, you not only take the risk of losing your money but damaging your credit score as well! Which takes us to myth number five:

Myth No. 5: Debt Settlement Can’t Damage My Credit Rating.

The fact is, just like bankruptcy, going the route of debt settlement can do just as much harm to your credit score. Even though it can do no harm to your credit rating when inquiring as to whether debt settlement is possible, following through to completion just might. By simply doing what you can to settle your credit card debts, your credit ranking won’t be harmed. However, if you end up defaulting on your debt, expect your credit rating to take a hit. This can result in a higher cost being paid in the future should you seek financing for anything, leading us to myth number six:

Myth No. 6: Going Through A Debt Settlement Company Won’t Cost Me Much.

If this is what you think, you might want to think again! By the time you have finished paying the settlement company for services rendered, you’re also looking at an annual account maintenance fee due to the fact that you are now being viewed by creditors as an increased risk. Not only that, but because you are now considered a credit risk, it is likely that you will have to pay more up front in order to establish new credit in the future.

The lower your credit rating becomes, the higher the interest rate will be on any future loans. There is also the likelihood that you will need to come up with more money up front and experience additional fees in order to get credit. This is on top of the fact that your damaged credit score will remain that way for the next five to seven years. Also, keep in mind that the amount of debt forgiven by a lender is often taxable, resulting in more money out of your pocket.

If this has your head spinning because you still think debt settlement is your only way out, read on:

Myth No. 7: Debt Settlement or Bankruptcy Are My Only Ways Out.

In all actuality, there are always options other than those two. An example would be if you were to lose your job. Informing your credit card company of this fact may result in them giving you more time to pay or initiate making smaller payments for a period of time. They may even wave payments for the time being until you can get back on your feet. Keep in mind: the interest on the loan will continue to accrue.

You could also consider contacting a non-profit credit counseling service to help you take a look at the big picture in order to see all your options, including downsizing where you currently live or finding innovative ways of increasing your income. They can also help you establish a budget and help you manage it. Even so, there is still a price to pay for mismanaging your current debt load and myth eight addresses that:

Myth No. 8: When Done Negotiating My Debts, I’ll Be Debt-Free!

If you have gone through a debt settlement company, no matter how reputable, what you have done is signed on to a new debt agreement! Even though they have been successful in getting your debts settled, you now owe them for services rendered. As a result, you have essentially established a new debt load with a new creditor!

Bottom line:

Even though the old saying that hindsight is always 20/20, once you have successfully determined the best way to settle your debts and have charted a course to do so, always tell yourself these two words: “Never Again”!

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0 APR Credit Cards: Harder To Come By?

admin — Tue, 20 Jul 2010 16:08:22 +0000

In this world where high interest payments are so prevalent, possessing 0 apr credit cards is no longer a luxury; they have become a necessary hedge against paying too much for something charged. Prior to obtaining one of those 0 APR credit card offers in the mail, I was paying a very high rate of interest on my credit cards every month. Because it was monthly, I didn’t pay too much attention. However, even though 20 dollars a month in interest on the balance might not seem like much, when I saw that was 240 dollars a year, I suddenly realized how foolish it was to not get one of those 0 apr credit cards!

Today, 0 apr credit cards are still pretty easy to come by; you just have to be careful to read the fine print before applying for one. Regardless, many of these 0 apr credit card offers allow you to apply on line, which is a convenient way to do it, so how could you afford not to? There are so many advantages to possessing a zero percent credit card; the main one being no interest added to the charge amounts.

However, there still remains a downside to owning any of the 0 apr credit cards. What appears to be nothing short of a miracle at first: a card that lets you borrow money with no interest, can end up being an added financial burden if you are not careful. As a result, many people rack up substantial debts on their 0 apr credit cards, on which they have to repay above and beyond the charge amounts because they don’t make their credit card payments on time, thus incurring a finance charge on the unpaid balance.

If you have or are thinking about getting an 0 apr credit card, you’d better make sure that you understand: it is not a “magical goodies” card giving you everything that you could want at no cost. Make sure that you are always prepared to pay off your balance in full each month, or you will experience a hefty interest rate fee attached to that unpaid balance!

One final thing to note: 0 apr credit cards are especially dangerous for young adults who might be somewhat naive about the rules of finance. If you are just getting out of high school or college and are learning how to budget correctly, a 0 apr credit card can seem like a good idea– something that can help you now by giving you access to an interest free credit card. However, if you aren’t aware of the potential hidden fees and charges added to your unpaid balance each month, your 0 percent credit card isn’t going to help you minimize your debt load!

Again, it is vital to understand that you be prepared to pay the 0 credit card bill each and every month in full; otherwise the zero percent interest rate will not help you at all.

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Credit Card Debt In the 21st Century

admin — Sat, 17 Jul 2010 21:05:16 +0000

One thing is for certain, there have always been plenty of reasons to spend money! But never confuse this willingness to spend with availability of funds. Much of the time we spend money that we don’t actually have. While this may be fun when we’re doing it, it can definitely be a burden in the near future. In fact, the average credit card debt today would boggle your mind! Credit cards are to blame, right? Well, maybe it’s partially our fault. We bump into new items all of the time that we think we need, but probably just want. Who really needs another TV, or a new outfit from a designer clothing store? Either way, many of us make the mistake of buying, whether we have the funds or not. This unfortunately leads to credit card debt.

As is the case with many, when I received my first credit card, I was pumped! To my way of thinking, I could now buy whatever I wanted. Even though I knew this wasn’t completely true, I did have access to ‘money’ that wasn’t literally in my wallet. Like with many people, this tempted me. All of those things that I wanted to buy, but couldn’t before; now I could get them. I knew very little about consumer credit card debt. All I knew was that I wanted it! I wasn’t exactly hip to the whole concepts of APRs and minimum monthly payments. I went ahead and charged my card up. In no time I had a small credit card debt. This is where I stopped and learned. Although credit cards can get us out of binds or come to our rescue on certain occasions, we shouldn’t abuse them. If we go crazy, the debt can be unbearable.

Of the many ways to address credit card debt is by considering debt consolidation. My parents, who had accumulated considerable debt on three different credit cards, were going through this process. After doing some research into consolidating credit card debt, they were able to locate an ideal consolidation plan. Now all of their credit card debts were paid off by the consolidation company, and then they had one monthly payment instead of three. This made things much easier concerning their finances. I too now understand the benefit of consolidation. After attending a 4-year-University, I immediately consolidated my student loans in order to keep up with payments.

If you are confronted with credit card debt, you don’t have to go it alone. You can access the Internet through your computer and browse the many websites that offer credit card debt advice, as well as debt consolidation information. If you can’t afford your current monthly payments, look into a consolidation plan that’s right for you. While credit card debt can be a burden, it doesn’t have to control your life.

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Credit card debt consolidation

admin — Thu, 08 Jul 2010 13:16:16 +0000

As many have found out, credit card debt can turn into a financial nightmare. Since many today are faced with this problem, one of the ways to resolving this dilemma is through credit card debt consolidation. This approach could be one of the most important first steps in the direction of credit card debt reduction and ultimately elimination.

So, you may be asking what credit card debt consolidation is all about and how you can move in the direction of resolving your credit card debt.

To begin with, the essence of credit card debt consolidation is to take all credit card debt and move it to one lump sum debt amount. The number one way to do this is to secure a balance transfer credit card that will allow you to move all your other credit card debts onto one credit card. Hopefully the balance transfer (or credit card debt consolidation) is done from credit cards containing a higher APR to credit cards with a lower APR.

If this is not possible, credit card debt consolidation can also be achieved by going to the bank and applying for a bank loan (again, hopefully at a lower interest rate). You would then take that money and pay off all your higher interest credit card debts and then pay back the money borrowed from the bank in the form of monthly payments.

Either way, since there are several credit card suppliers and banks who keep coming out with attractive offers for credit card debt consolidations in the form of balance transfers or loans, you stand a good chance of saving some money on interest payments and getting your debt paid off quicker. However, it is good to keep in mind that credit card debt consolidation is a serious matter and you must exercise caution so that you don’t get into deeper financial trouble.

When going for credit card debt consolidation, you must carefully weigh out the offers from various banks and credit card suppliers. Check the time period for which 0% APR is being offered and also the APR that would be applicable after the lapse of that period. Generally, a 0%APR is valid for a 6 to12 month period only. Once that period has ended, the rates could go up considerably. So, if you are confident of paying back a considerable amount of debt in that period, this kind of credit card debt consolidation will work for you, even if the APR after the 0% period has expired is a bit higher.

However, no matter what, the long term APR is going to be the most important thing for you. If the long term APR is more than the APR for your current credit card, this kind of credit card debt consolidation will be not be a good idea for you. Also, check any other charges before you actually sign on the dotted line for a balance transfer or credit card debt consolidation with a bank.

One final thing to consider when desiring to reduce your credit card debt is to check with your current credit card supplier and see if they will offer a lower APR to you in order to help you in cleaning up your debt. You might be able to convince them to do this, thus eliminating the need for credit card debt consolidation in any of the other ways discussed.

Bottom line, it’s important that, once you have both seen the necessity of credit card debt consolidation and secured a better payment plan at a lower interest rate, you also develop good spending habits; otherwise credit card debt consolidation will really be of no use to you because it is likely you will just go back into debt.

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Credit Card Debt Scenarios

admin — Fri, 02 Jul 2010 13:50:58 +0000

Unless we are from another planet, when hearing the phrase “credit card debt” we flinch. However, this phrase is becoming commonplace in our society. The fact is, as much as we would like to, we can’t seem to stop using credit cards! Seriously, how often do you want something, but can’t afford it?

At times like this, that wonderful piece of plastic can indeed save the day. Well, maybe not exactly. We’re actually just getting ourselves into trouble when we charge things that we know we can’t afford. This is not a prudent path if I may say so myself. Credit card debt is one of the last things you want at any point in your life.

Increasingly, the use of the credit card is being employed by the college student. As the need arises for anything from new textbooks to even covering student loans, the credit card is king. Because of this, we often refuse to even think beyond believing that, as soon as school is over, we can simply pay off the charges in a short amount of time. However, this is the sad misconception of many youths. The reality is that you’ll graduate with a chunk of credit card debt and struggle to find a job in the competitive world we all strive to get ahead in.

Even though you have that degree in hand and have landed that coveted job, you will still come face to face with a number of reality bills. Some will be in the form of rent or a house payment, car payment, power bill, food bills, and the list continues. On top of all those bills, you have to fit in the credit card debt you incurred while in school. But how to fit it in with all those other financial demands? Can you still pay it off quickly, or is it looking more like a long term thing? Well, most likely it is time to consolidate your debts and do the best you can.

If you have read this and haven’t yet taken the plunge into credit card debt, the best advice is to not do it! Taking on the added burden of credit card debt is one you should seriously try to avoid all together. Don’t make the mistake of charging up credit cards to get extra stuff that you desire, but probably don’t need. The trick is to get through college, then get that much awaited job and purchase things when you can afford them. As someone who accumulated credit card debt in college, I speak from experience.

However, if your credit card horse has already left the barn, there are some options. For example, you can get online and research what options are available to you. It is possible there may be a grant out there to aid you in ridding yourself of pesky credit card debt, or possibly a debt consolidation loan that will make your debt more manageable.

The bottom line is, whether you are about to go into credit card debt or already find yourself there, stop suffering from the typical angst that stems from credit card debts. You can find a way to get yourself out of debt. Believe it or not, there are options.

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Exposing Credit Card Debt

admin — Wed, 30 Jun 2010 13:39:03 +0000

As the saying goes “when I was a child, I thought as a child” could have included viewing the cost of living through the eyes of a child. If you are like me, the cost of things took on a whole new meaning once I grew up! As a child, I never gave what something cost a second thought. However, after going through high school and then off to college, I experienced a real wake up call.

All of a sudden, I was getting a good dose of sticker shock of how much college was costing me. This can be rather discouraging. How will you pay for your room, meals, and tuition? Will you have enough cash left over to buy books? This is the point where many of us start opening all of those credit card pitches we receive on a daily basis. We desperately need some kind of financial aid to help us get through the next four years. Don’t get me wrong, credit cards can be a blessing when you’re in a jam, but far too many of us tend to go overboard with the little plastic wonders. Unfortunately this can lead to some serious credit card debt in the future.

It comes as no surprise to discover that many people possess more than one credit card. In fact, we may actually have two or three. Regardless of how many credit cards we find in our possession, the purpose of having credit cards is not to overuse them. Accruing major credit card debt can definitely put a kink in your future plans!

The original reason we secured a credit card was to provide us with instant access to things, especially if we didn’t have the money at that particular moment. Unfortunately, we can often go from use to abuse if we’re not careful. You see, when you charge up your MasterCard or Visa, you sadly begin the vicious cycle known as credit card debt. You’re in debt and the credit card companies are making a killing off of the interest rate. You send in a payment of 400, which is good, but somehow you really only got ahead by 300. Problem is, it’s that darn interest tacked onto the amount due. Welcome to the sad and dismal world of credit card debt.

Well, don’t be alarmed and don’t be dismayed. The fact is, many of us have been down that road as well. Some people just don’t even pay attention to the dilemma. A close friend of mine has two different credit cards with 20 grand in debt on each. What I don’t get is that he has 35 grand in his savings account; so why not get rid of that credit card debt?

Understand, if you’re grappling with credit card debt, you’re certainly not alone. In fact, a great number of Americans struggle with credit card interest and payments on a regular basis. The key is often consolidating, or even better yet, steering clear of credit card debt before it ever happens. Don’t go crazy in college and jack up your credit cards for meaningless fun. You will surely regret it after graduation. Don’t live beyond your means and purchase things on credit that you’ll never pay off. This is a terrible idea.

One way to either avoid this temptation or to get on top of your financial situation if you find yourself in credit card debt is to search this site for more helpful information to get you back on track when it comes to credit card debt.

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Why You Pay Off Credit Card Debt

admin — Tue, 29 Jun 2010 14:15:53 +0000

The title of this article lends itself to an obvious answer: it is to finally be debt free from all those credit card bills! So, now that you have the ‘why’ answered, let’s take a look at after you pay off credit card debt to help steer clear from any further credit card debt.

The number one way in which people find themselves in credit card debt is due to a measure of irresponsibility when using their credit cards for purchases. It comes from not being as disciplined with their credit cards as they should be. If this describes you, don’t despair and don’t feel guilty or ashamed. Continue reading on and take the advice given in the care and compassion it is being given.

It is also possible that credit card debt is the result of some emergency that required more money than most of us have on hand. Whether this is true or not is not the point. The point is to now determine how to go about paying off that credit card debt. There are many ways to go about paying off the debt from using credit cards but, regardless of which way you go about this, it will require a lot of discipline, restraint, planning, perseverance and some personal sacrifice to accomplish this goal.

The main point of this article is to be a sort of reminder why you pay off credit card debt so you won’t be tempted to go back into debt once this goal has been reached. It goes without saying that we can forget sometimes the feeling we got when looking at the debt amount, determining to do something about it and charting a course that eventually saw us paying the debt off in full. Once some time has passed and the memory of that victory has faded a bit, we begin going back into credit card debt once again. We find ourselves again going on a spending spree.

So, it’s not enough to just pay off credit card debt, it’s equally important to maintain a debt-free status even after you pay off that debt; only then can you enjoy a stress-free life in the world of credit cards.

This is why it is so vital that you not lose sight of the reason why you determined to pay off that credit card debt to begin with! It is important that you have learned your lesson well and not let yourself go down that path ever again! Keep in front of you the rules you followed when you were trying to pay off credit card debt, and remember how well those rules served you to have paid off your credit card debt in the first place.

Here are four simple things to keep in front of you after you paid off that credit card debt:

1)   Do not overspend. Yielding to that great sale for something you don’t really need is a big mistake that leads to overspending.
2)   Always remain within 70% of your credit limit.
3)   Make credit card bill payments in time and in full each and every month.
4)   Don’t hold more than 2 credit card accounts if at all possible.

These are just very basic things; feel free to add to these recommendations based on your own experience and knowledge.

And, happy debt free living!

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This Problem Known As Credit Card Debt

admin — Fri, 25 Jun 2010 14:56:26 +0000

As more and more people go to a cashless society, having a credit card has gone from a luxury to a necessity. In fact, unlike what you might think, many have more than one credit card in their possession.

As a result, the credit card industry continues to grow by leaps and bounds. Even though this might appear to be a good thing, both the credit card industry and credit card holders are faced with a big problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the inner workings associated with the use of credit cards.

Obviously, to begin with, credit cards are simply a card on which you make purchases. However, for an increasing number of people, that is not enough. The convenience factor of credit cards has made it easier than ever to “have it now” and this has resulted in an increasing debt load experienced by those who use their credit cards in this manner. In addition to the balance owed each month, if the user is not able to pay the amount in full, they also receive an interest charge on top of the remaining balance.

You can see that, if the owner of the credit cards over-extends their ability to pay the balance in full each month, they can easily begin to experience credit card debt. If they are only able to make the minimum monthly payment required each month on their credit card, the interest rate fees attached each month begins to make it harder to pay off the balance each month. Plus, if the user continues to apply their credit card to purchases month after month, it is likely they will never fully pay off the amount owing from one month to the next.

Another way of looking at this is, if you don’t pay off your credit card debt in full, the interest charges continue to be added to your balance. So, if your credit card debt keeps on increasing, they will increase even more because of the interest rate fee added to the credit card debt balance.

Taking that one step further, if you continue only making partial payments (or worse, no payments) the interest charges are compounded on the new credit card debt. So you end up paying interest on the last month’s interest charges as well!

Bottom line in this ‘worse case scenario’:

As your credit card debt accumulates at an increasing rate, you will soon discover that, what was once a relatively small credit card debt has ballooned into a big amount that will be almost impossible to pay in full. Moreover, if you don’t get control of your spending habits, your credit card debt will never go away.

If this describes your situation, maybe it’s time to get help. Consider reading our helpful information contained in the category called debt counseling.

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Debt Free In A Sea Of Debt

admin — Tue, 15 Jun 2010 14:32:06 +0000

As the country struggles under an ever increasing sea of debt, we are awakening to the possibility of “sowing what we have reaped” to the tune of being beholden to countries that are at the least Socialist and at worst Communist. This does not bode well for a nation founded on the capitalist system, whereby free enterprise and the free market have resulted in us becoming wildly prosperous. If we do not turn this ship around and sail out of this sea of debt, it is possible we will eventually strike an iceberg that will make the Titanic debacle look like a walk in the park.

It is no secret that, when an individual, business or government is in debt, they are subject to the rules of the lending institution. As a result, there is less genuine freedom for that individual, business or government to operate in. And, usually, that comes at a cost; a cost defined in monetary value.

The ultimate example is: When we borrow money, we agree to not only pay back the money we borrowed, but with interest established by the lending institution. Examples such as making a car or home loan, the two most common necessities that require more money than the majority of us have on hand, come with the standard interest amount attached. Even so-called “interest free” loans come with a catch; that being, should the loan not be paid within the time frame agreed, an accrued penalty fee is placed against the loan that now makes it even more expensive to pay back. Many of us have done so, especially when acquiring a credit card.

Sadly, this is what our government is doing even as we speak. The prevailing thought is: in order to get us out of the debt we are currently in, we need to spend more money, in the hope that, when things turn around, we will be able to pay that money back. What is even more frightening is the amount of money borrowed against that “hope” from countries normally considered our enemy! The real conundrum here is that the government is free to do this, but we are not. Well, maybe that isn’t necessarily a bad thing. Let me explain why:

As the government continues to rack up record deficits and keeps raising the debt ceiling, we need to keep from doing the same. If we are able to accomplish what an increasingly socialistic government thinks is right, by not going further into debt, we will realize a freedom that is born from becoming debt free.

You can learn more about becoming debt free in a sea of debt by clicking here.

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