Overwhelmed With Credit Card Debt

Lets say you make 4,000 dollars a month. You have 10 credit cards, each with a limit of 4,000 dollars. everymonth the minimum payment on each card every month is 200 dollars. Why can't you come up with 2,000 everymonth if you plan for it? You don't have to have the money that you charged on the card.

I know my logic is flawed, but can anyone get at what I'm trying to say?

It’s a psychological issue. Spending with credit card is painless, whereas paying cash is painful. Opening up your wallet, pulling out hard cash, and handing it over, is traumatic, whereas fingering over the plastic never never card is easy.

Study after study shows people spend more on credit than with cash. Thus, in the majority of cases, credit increases fiscal irresponsibility and instant gratification becomes an addiction in and of itself.

It matters not how much you make, if you spend more than you should you WILL get into trouble. If you pay in cash for everything, and you overspend, your pain is immediate (your broke till next paycheck)

If you overspend on credit, you may go months or even years before the pain is felt, and by that point it’s usually too late to reverse course. Plus people with large credit lines feel wealthier than they are, and purchase things they shouldn’t and become accustomed to a lifestyle they’re not really entitled to.

This is compounded by the fact that interest means each $1.00 spent requires $1.50 or more to repay after interest. So not only are you buying more than you can afford, you are paying 50% more than even that.

Irresponsible use of credit eventually spirals out of control resulting in financial disaster, it’s not IF but WHEN.

Have 2 cards, keep a low balance (less than 20% of available) or you’re doomed.

2008-01-24 20:24:10 by traveler#305

This video will help you understand your options when you have a lot of credit card debt: from negotiating with the company to bankruptcy. Justin ...

I just read a great book called the debt diet. Get a good debt book from the library and read it.

A debt relief program is not going to help you anyway, so be thankful

2007-01-28 13:01:43 by purple11

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You can talk to a lawyer about debt consolidation or if it is right for you you can file bankruptcy, which might be a good thing for your personal needs.

2006-10-21 16:03:52 by vakas j

In June I called American Debt Settlement Services to help me out with 3 credit cards I have. I have had these cards since 2001 and up until June I could not come up w/ any of their minimum balances. Well, the debt service made everything sound do wonderful and I was relieved, so I went along with their program. At that point, I asked Yahoo answers about Debt Settlement and they said it was a scam. So I opted out of it at the beginning of August, put a stop payment on my account and faxed over a letter of termination. Now, don't know what to do 2 of my creditors have now put me in collections. I am a respected family person and times are tough!! I am afraid of the next step.. Should I apply for a home equity loan, a bank loan, I do not want to file for bankruptcy. I owe between the two cards 27,000.00. One of my creditor I have worked out a plan with. The other two will not talk to me unless the have my husbands permission. Whenever they call he is not home he is a firefighter and his hours always fluctuate-Please what would you do? The stress is killing me. I don't want my 8 year old daughter to see me like this...

You do not want to take out a loan or home equity. This is like chasing your losses and is counter productive, especially since it may threaten your home. The options of consumer credit counseling, debt consolidation and/or bankruptcy are expensive and unnecessarily prolonged Your best bet is to settle these debts down. However, you may need help in doing it. Remember there are many bad apples in the debt settlement industry but not all of them have bad intentions. I suggest you do your research and find out who has the right affiliations, who is a member of TASC and who has no complaints on the BBB site.

I wish you luck with this. Remember health comes first so do not let this problem impair that.

2009-08-16 15:08:31 by Amykins44

I lost my job for a while, but now have a new job and have for 4 months . I want to consolidate most of my debt to one payment. I want to buy a house in the next 2 yrs. Do I have other options than just stop making payments, ruining my credit and start all over again? HELP! My credit score has drop quite a bit due to my unsecured credit ratio (all credit cards maxed out). I due make my payments monthly and am current all credit cards. But it is just too much and I am being slaughter by interest. Whant can i do.

Thank you for your time.

cards.hotusa.org - try this one. You can compare different credit cards and choose the best one for you to transfer funds.
Some of them provide 0% interest rate for 12-18 months.

2008-12-17 21:26:04 by overwhelm