Bad Credit Blog

I was talking to a friend of mine the other day, who I knew was drowning in credit card debt but working hard to pay it off. When I enquired how things were going he hemmed and hawed and finally told me it wasn’t going very well. He confided that instead of not using their credit cards for the holidays as he had told me was the plan, both he and his wife got into a competing match (it seems) to see who could outspend the other. Now my friend and his wife blame each other for their credit card debt. Any rational person knows this is a recipe for marital as well as financial disaster.

This got my wheels spinning because I have been in credit card debt in the past; maybe you have too and can identify with what I’m about to say. Here are some of the dumbest reasons for NOT getting out of debt.

1. It’s all (his or her) fault. Money is the #1 reason for divorce in this country. Instead of taking personal responsibility they play the “blame” game. One of you needs to provide some financial leadership. It’s not always the man’s job (or woman’s) it’s whoever has the best head for management. The other partner needs to cooperate.
2. Credit cards are the only way that I can get what I need. (Translated: want). What is really needed is a budget. It just takes a little discipline. In other words, you give yourself an “allowance” to spend on things you WANT, then use everything else to pay for everyday living AND to pay off yoru credit cards. If you are in credit card debt too deep then you will benefit from a good credit counselor . Many times this is the only way out.
3. Spending makes me feel so good. I’m not a psychologist but I have read of people that get a high from spending. There’s also a section of people who get the same feeling from shoplifting. If you fit this get professional help. Someone told me that they feel “free” when they spend. They are lying to themselves, they are not free, but rather a slave. Don’t be foolish!
4. If I get too deep, I’ll get another credit card with 0% and transfer the balance. Well, duh! That’s so unintelligent that I won’t comment!
5. I’m not paying “that” much in interest. Oh, really! If you run an average credit card debt of $6,000 - and if that amount remains level for a year and your interest is 21% you are spending approximately $1500 in interest charges alone! AND that’s just for one year. Einstein’s definition of insanity is “doing the same thing over and over expecting different results”. Still think you don’t need help? You need to contact a credit counselor Immediately!
6. I don’t think I can ever afford to retire; besides I love my work. I’m not sure our Creator ever intended us to completely retire as we see it done today. But consider what would happen to you or your family if a disaster should happen. Recently the bottom fell out of the real estate market and property values fell dramatically. If you were laid off your job you may not qualify for a home refinance. Think about that next time you head out to the mall!
7. I’ve lived on credit cards for so long that I don’t think I can live without them. You CAN and you MUST if you ever want to be free. There is nothing wrong with using a credit card occasionally for an emergency. However a night out is not an emergency! If you can’t handle a credit card responsibly, then don’t carry one.

Let me make a confession; I am no different than you, so I don’t carry my credit cards on a regular basis. I carry a debit card only most of the time and always know exactly how much I have in my checking account so I don’t overdraw.

If you need help with your financial world we can help. Whether it’s mortgage refinance or a 1st time homebuyer with no credit or bad credit, pre-qualified auto loan , auto insurance for people with bad credit. Whatever your need, we have answers.