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Credit Card Problems
Drowning in credit card
debt is no fun. Your very freedom is at risk. You have no money for
things you need, let alone the things you want. Many of us get into
credit card debt because we splurged on too many things that we wanted.
Others are thrown into the situation by circumstances like illness or
job loss.
Take Dorothy Willis, who racked up a $10,000 balance on her credit card.
She made decent money, $40,000 a year, but she could barely keep up with
the $650-a-month minimum payments on her card, let alone pay off the
principal. Poor Dolores was in credit card debt hell. That's a giant
problem that doesn't go away.
This story happens all across the country, every day. The latest
statistics from the Federal Reserve, which tracks American debt, show
that our consumer debt averages to more than $18,000 per family and that
doesn't even include the monthly mortgage.
The Solution
Dorothy Willis was panicked. She knew paying off her debt would be hard
and she could not do it alone. She finally talked to a family member,
who agreed to transfer her balance to his own credit card which offered
zero interest. She set up a goal to pay it off in one year.
Dorothy created a budget tracker. It listed her fixed expenses (monthly
bills) and estimated food and other costs. She carried it with her at
all times. This helped to deter her from buying any unnecessary items.
Her budget sheet told her exactly what she could and could not afford.
If in doubt, Dorothy consulted her list.
With little money for frivolities, she improvised on gifts and
entertainment. She made personal gifts for birthdays and special
occasions. She took walks, went to the dollar movie theater and used the
library.
After a year of hard work and determination, she was able to pay off all
of her debt. Dorothy is rightly wary of frivolous spending, even though
she often get the urge to buy something she doesn’t need. Now she knows
how to discipline herself and reward herself when the time is right.
Some people like Dorothy can work out their problems on their own, but
for others it is much easier to work with a professional debt counselor
who will have good, concrete tactics for debt management. If you’re in a
debt situation, don't hesitate about contacting a debt counselor. Their
services are usually free. |
