Credit Card Traps

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Are you like the average American carrying around $10,000 in credit card debt? Did you know that by making just your minimum monthly payments it will take you 40 years to pay that amount off? If your total debt is more than the average, it could take 50 or even 60 years to pay off! Credit Companies know how to trap you and keep you in debt forever!

The government has finally stepped in and has begun to put limits on the interest credit companies charge. Unfortunately those limits aren’t changing your current debt.

Every time you swipe one of your credit cards someone else is getting rich! Credit companies made $70 Billion Dollars last year on the interest charged to card holders. That’s right, BILLION not million! It’s outrageous! They know that they will continue to make billions even with the economy failing because we use one card to pay the minimum on another card and the cycle continues.

If you fall even one month behind they hound you like you were some kind of dangerous criminal! They call at all hours of the day and night, even weekends! It can get to the point that the mere sound of a phone ringing can send you into a cold sweat! Credit Card debt is the cause of 90% of the bankruptcies filed in America. People just can’t take it anymore and don’t know any other way out!

Money is tight so you think using your credit card will buy you more time to pay off the things you need. However, the reality is just a simple $100.00 purchase could take 5 years to pay off! The interest just keeps accumulating. This is the trap that so many Americans have fallen into and find it almost impossible to get out of.

You need to contact a credit counselor that knows how to take advantage of the consumer protection laws. They can eliminate up 50% of your credit card debt legally and without bankruptcy.

Realizing that using credit cards is not always the answer can go a long way toward preventing getting in over your head. It may seem quick and easy, but it will end up controlling your financial life for many years to come. It simply isn’t worth it! If you can’t afford to buy something with cash, don’t buy it! Save the credit cards for emergencies only!

The real way to use credit cards is to pay off the full balance every month. This way interest and finance charges are never applied. Consider your credit card simply a way to get an advance on your paycheck, this way when the bill comes in the mail you are prepared to pay it off in full.

In order to build your credit score use one card for a small purchase and pay only the minimum monthly payment for a few months. This shows that you are establishing credit and know how to manage your credit cards. However, if you keep the balance small enough the interest and finance charges won’t break you or put into financial crisis.