Credit Card Debt-Get Out of the Abyss

Credit Card Debt has gripped many of us. First, let me say it is nothing to be embarrassed about. We all fall into the traps, myself included. The credit card companies offer “NO INTEREST” for 24 months. Who wouldn’t jump into such a great deal? Well, I have taken the bait, and it has been devastating. In an effort to help my adult children with their financial problems, I have used all of my credit cards to pay many of their bills. Yes, now I am in trouble and I have found the solution!

credit card debt-lady stressing over credit card bills

I felt an immediate sense of satisfaction after helping my adult children. Hurray, I am the best Mommy ever! WRONG!!!!! Though I feel better about myself, I have found that I have dug a hole I cannot get out of on my own. The interest charges on these various cards are eating me alive. No matter how hard I work at paying these debts off, I am not gaining any ground.

How You Get Into Credit Card Trouble

We are all intelligent people, we look out for our finances and we trust when a company tells us “this is a good deal”. It’s time for all of us to realize that the credit card companies are only in it to make a buck. They are not trying to give you a good deal; they are trying to HOOK you. And, I took the bait. Jumping into transferring credit to another card for two years fee interest. This is simply a way to get you to move your debt around (thinking you are getting a deal); when in reality you are paying even more money for the transfer. I felt stupid when I finally realized what was going on, but I was reassured by my new financial advisor that I was not alone. Thousands of us in this world fall into the same traps.

credit card debt-finger pointing to man to shame

Most of us don’t like to talk about money. It’s hard, and it makes us uncomfortable. But it is extremely important to address the issue and stop your debt from piling up into an unmanageable number. The average credit card debt last year was around $5000. I am ashamed to say mine is much, much more.

Facing Your Credit Card Debt

It’s important to break the stigma!! So, let’s get started. If you continue to keep your money problems a secret, the better the chances you will Iive in anxiety and continue to make bad choices. First, accept your bad choices have contributed to your dilemma. Now, seek help, because it is out there. I personally have found the most amazing people who are helping me. Be prepared: you will have to adjust how you function. You will need to switch to a cash-based way of living, but because of this group, you will find that is entirely possible for you.

I am very excited to start with this program. Why? Because the credit card debt has been taken out of my hands. This company will be negotiating with all of my credit card companies to reduce the amount I owe them and also STOP the accruing interest charges. If you feel your credit card debt is getting out of control, you really need to at least talk with these people and see if it could be the answer for you to get a handle on your personal credit card debt. I have a renewed sense of relief that I have taken control over my credit card debt.

Criticizing Various Ways to Pay off Credit Card Debt

While talking with my advisor from this company I learned a lot about why published ways to get out of debt just don’t work. So let’s review some of the strategies you will find out there.

The Avalanche

For those who have multiple credit cards; pay at least the minimum payment on each. Then, you will want to pay extra on the card that has the highest interest rate until it is paid off. Sounds great, right. By doing this (paying more than the minimum) it reduces the total interest paid. This only works if you have EXTRA MONEY. If you had extra money, you wouldn’t be in this situation in the first place. THIS DOESN’T WORK!

The Snowball

credit card debt-pencil erasing word debt

Supposedly, this method can work if you find yourself juggling several credit cards that have similar interest rates. What they advise you to do is pick the smallest balance and pay it off as quickly as possible, and then only make minimum payments on your other credit cards. As the Avalanche Method, you first need that extra money, which most of us don’t seem to have. Though you may pay more interest over time. Again, be cautious, if you really don’t have extra money to apply to this; IT WILL NOT WORK.

The Middle

This is just what it sounds like. It lives somewhere in the middle of the Snowball and the Avalanche. It does not dictate specifically how to pay off your debt; you simply pay down balances on all of your cards, all at the same time. This gives you the ability to make a dent in your debt, but it is slower than the snowball or less strategic than the avalanche. So, basically, IT DOESN’T WORK EITHER.

Other Options

You can call your credit card company and request a lower credit card interest. Sometimes that can be helpful, but be aware. You may then be offered a higher credit limit or additional offers. Don’t fall for the hype!!!

The Balance Transfer

THIS IS A BIG: “DON’T FALL FOR THIS”. Though it sounds wonderful, they are offering you a balance transfer to move old balances to a new card. Be on the alert: though they are offering a lower interest rate, it may only be for a limited period of time and there is a hefty, additional charge as a transfer fee. Be aware: this is not too good to be too; it is another trap.

In Conclusion:

I hope that by sharing my credit card debt issues with you, I have not only educated you on all the traps, but also given you a resource to explore to see if they can help you solve your credit card debt issues. There is help out there, but it is important for those of us who have fallen into this trap to retrain our brains to learn that we really can exist in a cash based world. Good Luck to all of you who choose this path I have chosen. Check back with me and I will keep you all informed of my progress. Let’s get out of debt together. If you need to discover a way to bring in some income while you are at home, we can help.