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					Don't Let Credit Cards Rule Your Life
Did you know that the average credit-card holder in this country has ten cards, and the average
family owes over $7,500?

That’s a record.

And did you know that one dollar of every three in consumer debt is in credit cards?

The fact is, credit card debt is rising faster than Americans' income, and more folks are falling
behind in their payments.

So today I’m going to look at:
why credit cards are a problem,
and what you can do to make sure it’s not a problem for you.

The plain fact is, that a lot of people are in trouble.

And to get out of financial trouble, they’re using credit cards to get over the hump.

Credit cards are common among university students in the United States.

A study by professors at Iowa State University found that 76 percent of students hold three or
more credit cards while 40 percent had six or more.

And even though rates start from 5%, the typical credit cardholder pays 17.66%.

Many of us get into serious debt, and that’s usually credit card debt.

And it won’t necessarily be because we’re just plain reckless.

Sometimes it can happen by charging up your cards with essentials in an emergency.

Suppose you’ve been a been victim of downsizing.

While you’re looking for work, you might be tempted to put groceries and rent on your cards
and hope that a job will come along that will help pay the bill.

Or you might not be making enough to cover basic needs and using credit cards to make up the
difference.

Unfortunately, many people over-extend themselves and get so deeply in debt that managing
their loans becomes a second job.

Not only are normal bills – the rent, the utilities, the insurance - piling up, all with different
payment dates, but they also have the credit cards and car loans to pay.

In the end, you find you’re in too deep, and don’t know what to do.

So what can you do to make credit cards less of a problem for you?

If you find yourself with a large outstanding balance the best advice is to STOP CHARGING.

It's no accident the minimum payment is low.
It keeps you from noticing the high interest rates you're paying.

On a 21% credit card the minimum payment on $1000 would keep you paying for around 10
years!

Longer if you keep charging.

In short, minimum payments are not a good deal.

The next step: look for ways to pay off your debt, even if you have to use savings to do it.

It’s always best to pay off debt if the credit card interest you're paying is higher than the
interest you’re earning on your savings.

There's no sense having a thousand dollars in the bank earning just 3% interest when you can
use that money to pay off a credit card balance piling up at 21%.

If you don't have savings to pay off your debt, then you can apply for a new credit card at a
lower rate.

There are many cards offering low introductory rates for the first year and they allow you to
transfer your balances.

You can take advantage of those low rates, then after a year, when they go up, look for new
introductory rates.

However, if things aren’t looking quite so good, and all of this sounds too hard to achieve right
away, at least take a look at your interest rate.

If you carry a balance from month-to-month, that interest rate is your most important
consideration.

If your rate is 18% or higher - that's the average nationwide - you’re probably making things
tougher on yourself than they need to be.

There are other card-issuers that will charge you a lot less - as little as 8.75% to 12.50%.

Lastly, charge only what you can pay off monthly - if you get a card with a grace period and
pay off your balance monthly you pay no interest at all!

When you look at the options available to you, you can see that credit cards don’t need to rule
your life.

Just imagine how much easier life would be if you knew that the next round of bills would be
arriving with no more new charges on them.

There’s nothing like debt to drown your spirits, but there’s also nothing like the idea of
actually one day being debt free to give you the strength to make a change.

So if this your problem, then I have some advice for you: it’s time to plan for a debt free life.

And to do that, you need a formal plan.

Remember that old saying - if you fail to plan, you plan to fail
If you manage your credit properly, you’re rewarded with better rates, lower payment terms,
and a positive credit history.

And once that happens, you’re on your way.

The bottom line is this: you don't have to give up credit cards.

You just have to make them work for you instead of the other way around.

If you’re working to keep the credit card people paid, then it’s time to take charge!

You don’t have to let credit cards rule your life, and from today, if you want to make the
change, they won’t be ruling yours.




Outline: Don't Let Credit Cards Rule Your Life
I. Introduction

i. Attention Step
Did you know that the average credit-card holder in this country has ten cards, and the average
family owes over $7,500?
ii. Preview
It’s easier than you think to solve your credit card problems. Today we’re going to look at how
big the credit card problem is, why it’s a problem, and what you can do to make sure it’s not a
problem for you.

II. Body

i. Need Step
A lot of people are in trouble. And to get out of financial trouble, they’re using credit cards to
get over the hump.

ii. Satisfaction Step
So what can you do to make credit cards less of a problem for you?
a. STOP CHARGING.
b. look for ways to pay off your debt
c. look at your interest rate.
d. charge only what you can pay off monthly

iii. Visualisation Step
Just imagine how much easier life would be if you knew that the next round of bills would be
arriving with no more new charges on them.

III. Conclusion

i. Summary
When you look at all the options available to you, you can see that credit cards don’t need to
rule your life.

ii. Action Step
Don't give up credit cards. Make them work for you ... instead of the other way around.
Reference
Debt Levels
http://www.debtsmart.com

				
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