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With the possible
exceptions of getting a divorce, or a
death in the family, there are few things
in life that are more difficult and more
painful than paying off your credit
cards.
High credit card debt is
a serious problem in United States that
has surpassed epidemic levels. It has
over-taken most Americans lives and
completely subjected them to long-term
financial prison. The average credit card
debt per household was $9,312 in 2004,
according to CardWeb.com. The total
balance on the nation's credit card debt
is $665 billion - that's $10 billion more
than the entire economy (Gross Domest
Product) of Australia. If the credit card
debt of all Americans was it's own
country, it would be the 18th largest
economy in the world. Politicians and the
American public complain about the
profits the oil companies are making -
but it pales in comparison to the $30.6
billion in profits made by credit card
companies in 2005.
Although it's easy to
dish out the blame to credit card
companies (who charge usory levels of
interest up to 30 percent), or the
government (which deregulated the banking
cartels that paved the way for them to
engage in predatory lending and mafia
style interest rates), - a fair amount of
blame belongs to the American consumer.
According to Professor Robert Manning,
author of the book, Credit Card
Nation: The Consequences of America's
Addiction to Credit, American society
has transformed from a society that
valued hard work, sacrifice and
discipline to one that emphasizes
personal consumption, instant
gratification and artificial displays of
wealth.
So you are not alone in
this problem. There are millions of
Americans just like you. And whether you
blame yourself (you should) or the credit
card companies - you cannot escape your
personal responsibility and the welfare
of your family by ignoring the problem
any further.
BadCreditService.com has
done the research and talked to the
experts to chart an easy to follow course
to paying off your credit card debt.
STEP #1. Be
honest with yourself: - Can
you really do this on your own or do you
need the help of a Consumer Credit Counselor?
Many people are just not strong enough
nor have the self-discipline to get
themselves out of credit card debt.
Americans have become an "I want
what I want and I want it now"
type society. Hard work, self-sacrifice
and discipline just aren't words in many
Americans vocabulary anymore. And did you
know that a Shopping Addiction
is just as real as an eating addiction,
alcohol addiction or drug addiction?
Those with a shopping addiction
rationalize all kinds of excuses as to
why they have to buy something. Many
women even use their children (my little
boy or girl NEEDS this for such and such)
as convenient excuses in order
rationalize purchases.
Whether it's to give
themselves a temporary "fix" or
to fill an empty void - many Americans
numb themselves to other external pains
or emotional issues through shopping.
Even those who are not addicted to
shopping have to admit - spending money
on ourselves makes us feel good. But it's
an easy trap to fall into. And your
enthusiasm today for getting out of debt
has to carry you through the bad days
when you desperately want a
"fix" - or to treat yourself to
some new clothes, shoes or a DeWalt
cordless drill.
So be honest and ask
yourself:
1. Do I shop to make
myself feel better?
2. Do I need help to get out of debt?
If you answered yes to
both questions, CONGRATULATIONS - you've
taken a remarkable first step to
emotional and financial freedom. Consumer Credit
Counselors can work miracles on your
personal finances and credit card debt
and most licensed professional counselors
(psychologists) charge on a sliding scale
fee - meaning, if you don't earn a lot,
their fee is lowered so that it is more
affordable. (See Step #10,
Change Your Lifestyle Habits for more
information on Shopping Addiction).
STEP #2.
Figure out how much money you owe:
- Although this might sound simple enough
for those with only 2 or 3 credit cards,
we have to list this step for those who
have...(wait for it)...(you are not going
to believe this)....for those who have 10
to 25 credit cards. Ten to 25? Ouch! For
those with 10 to 25 credit cards, they
probably don't know the exact amount of
how much they owe because A). It's too
hard to remember, B). They don't want to
remember C). They are in denial or E).
All of the above. If you have a lot of
credit cards, you need to get all of your
statements together, add them up and
write them down in your personal budget
finance notebook. Which brings us to #3.
STEP #3. Get
organized: - Buy yourself a
notebook and a calendar where you can
keep track of your credit card debt, your
interest rates, minimum payments, due
dates, phone numbers and balances. You
can organize this notebook anyway you
want, but write it all down. Writing it
down means you have to face it and will
remember the important dates and numbers.
In case you forget an important point in
the future, you'll have your notebook
with all the information you need right
there - instead of having to dig through
stacks of bills to get the due date or
balance you need to know.
Now that you have gotten
organized and written it all down, you
can begin your plan of attack.
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