If you're like the average person, let me warn you ahead of time about what I'm going to reveal in the next few paragraphs. You may be angry after you finish reading this article about how you've been misled in the use of credit card debt.
The American economy is designed to make you work yourself to the point of exhaustion, only to build wealth for those very same companies you work yourself to death for ? not for YOU!
The most eye-opening example of this is with consumer debt. For example, if you purchase your home with a conventional mortgage, you'll pay about THREE TIMES the amount over the life of the loan. Think about it this way. It's like taking your monthly mortgage payment and tripling it, then sending it off to the bank.
This is how much you will eventually pay back for the privilege of using their money. So you can see how two-thirds of the total amount you'll pay your mortgage company is primarily INTEREST payments. Interest is pure profit for the mortgage companies and a detriment to your financial well-being.
Ask yourself a serious question ? does the Bank deserve to get so much of your hard earned money? Do you think that they are doing such an outstanding job that they should be compensated so well?
This simply means that when you come home from a hard day at work, you've just contributed to your bank or mortgage company's bottom line ? not yours. THIS IS YOUR MONEY! I'm sure you've work hard to earn it. You'll most definitely have to pay taxes on it.
For instance, if you think your mortgage payments are out of control --consider credit card debt. If you have an average payment of $5,000 in debt, it will take you over 60 years to pay that debt in full if you make the minimum payments.
I don't know about you, but I wouldn't want to be retired and still making payments on credit cards I charged up in my twenties.
But you know the story, and you've probably heard it a million times -- the rich get richer and the poor get poorer. It's certainly not fair and I'll give you an easy way to get out of debt without loans or debt consolidation programs and more importantly, stay out of debt.
When you know how to invest the money you're currently spending on mortgage payments, car loans, credit card debt and any other type of monthly installment debt, you'll be pleasantly surprised at how quickly you can become debt-free.
Make a commitment to yourself to find at least 10% of your monthly take home pay to help you get out of debt. Look for ways to cut costs. Go over your cable bill, your cell phone plans, see if it still makes sense to keep your home phone, revisit insurance policies, etc. and see where you can redirect money to help you get out of your debt situation.
Now go and gather up your credit card bills, automobile loans, and any other installment loans you have and total them up. Keep in mind there's a difference between debt and expenses. Expenses are things like utilities, foods and taxes.
After you've come to grand total, look at the monthly payments for each debt. Select the monthly payment that is the smallest amount. Now, you'll add the money you've "found" to help you pay down this debt to zero. Once this debt is paid in full, take the money you were paying on this debt, add it to your second debt, plus the extra money you found and continue to payoff your debt in this manner.
It won't happen overnight, but you didn't get into debt overnight either. Consistency is the name of this game. By faithfully following this method, it will take the average person between 5-7 years to get completely out of debt.
Jamie Madison created a consumer website to help individuals get out of credit card debt. Get FREE access and step-by-step instructions to help you become and live debt-free. http://www.zapyourcreditcarddebt.com
Identity theft is when someone uses, without permission, your personal... Read More
Under the Fair Debt Collection Practices Act, collectors are not... Read More
What is a balance transfer?A balance transfer can be explained... Read More
About Search Entries:Every time a lender checks your credit history... Read More
One of the focus areas of my information is the... Read More
Consumers interested in purchasing or refinancing a home will pay... Read More
Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More
Credit Cards and Loans sounds like just two things, but... Read More
If you have ever fallen behind on your debts you... Read More
Spending HabitsSo you've just got your credit card. The first... Read More
In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More
It's not as hard as you think to raise credit... Read More
The three major credit bureaus, Experian, Equifax and Trans Union... Read More
Fact: Over 150 million Americans have credit report with the... Read More
Many employers are now looking at an applicant's credit report... Read More
If you find that creditors are calling you almost daily... Read More
Here are some useful tips on using credit cards. Whether... Read More
Not everyone has a positive experience with credit counseling. Potential... Read More
The most important thing for you to remember is that... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
STUDENT CREDIT CARDS With graduate debt averaging... Read More
Martin Henderson is in a fix these days. Because of... Read More
Have you ever wondered why your credit card bill is... Read More
INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More
Once you've been paying off a credit card for a... Read More
Do you have a poor credit rating? If so, you... Read More
Parents have the full responsibility for their children and their... Read More
Almost all students have and use student credit cards. Some... Read More
Credit cards are a form of unsecured credit. The issuer... Read More
Secured and unsecured debt - what's the difference?It's easy to... Read More
Here are some useful credit card tips for you to... Read More
Have your read your credit card contract through completely? Do... Read More
As you probably know, interest rates are at all time... Read More
YOU SCRATCH MY BACK, AND I'LL BUY SOME MORE BEER!Let's... Read More
You can still save money on a Bad Credit Loan... Read More
A recent amendment to the federal Fair Credit Reporting Act... Read More
What is a balance transfer?A balance transfer can be explained... Read More
In my previous article "Establishing Credit ? What You Need... Read More
Credit score is one of the most basic, determining factor... Read More
Always shop around to get the best deal when choosing... Read More
As you probably know, interest rates are at all time... Read More
When you apply for a credit card, the application that... Read More
Creditors will measure your credit rating based on the following... Read More
If you have considered credit counseling as an option to... Read More
"Like the tan? I got tons of sun on that... Read More
Whether you have no credit or damaged credit, secured credit... Read More
What are the APRs charged by the credit cards in... Read More
The Beginning of the Credit Card EraIn 1951, Diners Club... Read More
In the twenty-first century, there are few documents that have... Read More
Spending HabitsSo you've just got your credit card. The first... Read More
Credit is currently and has been historically an integral component... Read More
Identity theft is the fastest growing crime according to the... Read More
Whether you are aware of it or not, credit bureaus... Read More
Virtually all consumers will have a credit card at some... Read More
It's not as hard as you think to raise credit... Read More
Credit needed for real estate mortgage financing differs from credit... Read More
Bad Debt IdentificationIdentifying bad debt is not as easy as... Read More
If you have never heard of a FICO score before,... Read More
Prepaid credit cards also called stored value card can be... Read More
Do you have a poor credit rating? If so, you... Read More
With all my bills who would possibly want my credit?... Read More
Your credit score can either haunt you or reward you.... Read More
If you want to purchase a new home or refinance... Read More
Credit scores: all lenders use credit scores to determine interest... Read More
Everywhere we go, the word credit can be found, shining... Read More
What is a balance transfer ? A balance transfer can... Read More
Credit |