For those of you who have serious debt problems, you know exactly how poor debt management can dramatically impact your life in a negative way. Anyone who has experienced the stress of a financial problem (and there are very few of US who haven’t in at least one point of our lives) doesn’t need to be reminded of this.
And still, it can seem so easy when we arrive at a department store and reach the counter to pay for some clothes or other items. The cashier greets US with a friendly smile and offers US a credit card application, perhaps with some incentives like a low introductory interest rate or some sort of a rewards program for frequent shoppers.
In this situation, few of US stop and think of the consequences of such an action. It seems so convenient to be able to take home whatever items you wish and not have to pay for them until much later. Granted, using your cards every once in awhile may not be such a big deal, but for so many of US credit card purchases are like those famous potato chips – you can never eat just one.
Before we know it, we have accumulated an incredible amount of debt in a variety of forms. Our credit cards, car payments, appliances, and even our cell phones all have one thing in common. They are all usually paid for long after the item is enjoyed and at a much higher cost than we realize.
Few of US take the time to understand finance charges and how much money we would eventually have to pay. We also tend to make the wrong assumption that paying the minimum monthly payments is good enough to stay ahead of the game.
Nothing could be further from the truth.
Your creditors want you to pay the minimum monthly payments in most cases because they’ll end up making more money over the long term. It’s time for you to learn more about how to get out of debt as quickly as possible. Knowledge and action are the two key components to a successful debt management plan.
Anyone who is serious about improving poor financial circumstances will need to put in some time and effort. Getting out of debt and building a better financial future will take time, and it will take knowledge. Start today.