Credit Card Debt – the Leading Cause of Bankruptcy

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It has been discovered that 90% of all bankruptcy cases are a direct result of credit card debt. That is an outrageous percentage and a very eye opening reality. Far too many of us have fallen into the credit card trap and are now struggling financially. There are ways to gain back control of your financial situation.

Of course bankruptcy is one option. However, it should be as a last resort. The first things you can try include examining where your money goes each month. Are you eating out more than eating in? This does include lunch and dinner. Maybe you could start bringing a sack lunch and start using coupons at the grocery store in order to eat at home more often. Just eliminating eating out for a month will generate more money than you ever imagined something so simple could!

Are you a slave to the coffee shop? If you stop and think about it those coffees are costing you a small fortune! Start making coffee at home and get a travel coffee cup to take with you. Many people are amazed at how much they were actually spending just on coffee in a month’s period.

Take a good solid look at your monthly bills, including cable television and cell phone plans. Determine how much money you can save each month is you change your plans. Maybe go to just basic cable and lower your cell phone plan. For many people this creates a huge saving all by itself.

The next thing you can do after examining how much money you are spending each month and making changes is to contact your creditors. Most companies are willing to work with you if you show a sincere desire to get caught up. Take the initiative to contact your creditors yourself; don’t wait for them to contact you! Show them that you are making changes in your lifestyles in order to get caught up.

Look in to contacting a credit counselor. Do your homework and make sure they are reputable and knowledgeable. Many of these counselors can lower your interest rates and show you how to consolidate your bills to lower monthly payments and balances. They can show you how to create a budget that will actually work in your life.

If all else fails and bankruptcy becomes a reality, be aware that your credit will be negatively impacted for the next 7-10 years. If you can find any way to avoid this you should!

One other huge adjustment that you can make right away is the way you are feeling and thinking about your current situation. Try to focus less on the negatives and more on the positives you want in your life. Remember that negative thoughts and feelings attract more negative experiences and events. What we send out is what we get back, think about how great having all the money you need feels and focus on that in order to attract more money into your life! It is truly amazing how dramatically your life can change when you change how you view your life!