Credit card offers can be very tempting, and we certainly get enough of them in the mail everyday. Even people with poor credit scores are inundated with these "pre-approved" offers.
You did not heed their warning. You tore that envelope open "just to educate yourself" if you "one day" decided to get a credit card. This is the worm on the end of the hook.
Credit card companies are masters in the art of temptation. They can draw you in with promises of incredibly low APRs, zero percent balance transfers, and more. Plus, who wouldn't want a card that you could personalize to fit your style? Recently, many credit card companies offer to design a card just for you, making it even more irresistible.
You may apply with the intention of using it strictly for emergencies. Isn't that a safe and responsible thing to do, you say to yourself.
After a few weeks of telling yourself that you have mended your spending ways, you finally get your new card. A host of financial burdens seem to melt away. You no longer have to worry about your car breaking down or where to get gas money - you can always borrow the money and pay it back later.
You won't be tempted by the personalized card, the great rates, or the high balance. You'll use it for necessary items and pay the balance each month.
Once you diligently read the terms, you get right on the phone and activate it. This is a great step towards financial responsibility.
Now that you have the credit card in hand, ready to go, your mind drifts to what you can buy with it. You'll definitely pay the balance in full each month, so a few little purchases won't hurt. And isn't it better to use it and pay it off than to let it gather dust in your wallet? A few small, inexpensive items, and then only for emergencies.
A few small purchases add up, and when you get your first bill, you are astounded by the accumulation. You can't pay the entire balance, even though it's payday.
So you change your plan. You'll pay the minimum balance this month, and really start using the card only for emergencies. But you continue spending. The next month, you can't pay more than the minimum once again.
You are driving yourself deeper into debt. Soon, your credit card will have reached its maximum balance. This can leave you in a financially vulnerable position, so you get yet another credit card. Without changing your spending habits, however, you are just perpetuating the problem. Soon, you have to maxed out cards and are making only minimum payments on each.
Maybe one more card? That way you can pay off the other two and make payments on one. But that spirals out of control, and you are making minimum payments on not one, not two, but three cards. And, to make it worse, your great introductory rate has expired. It has shot up to twenty percent. Don't even think about getting a late charge. Your "few small purchases" have turned into thousands of dollars in debt, and it's growing each day.
You fool yourself to prevent the reality of your increasing debt and lowering credit score.
You make plans to pay off the entire balance with tax refunds or bonuses. But these get sucked up in everyday purchases, and still your debt grows.
Your credit card bills take a backseat as you struggle to pay your mortgage or rent, utility bills, car payments, and more. You get notice after notice, and soon collection agencies are on your tail. You feel threatened and scared but have no idea what to do.
Cut the cards you own in half. Once you begin to pay them off, the temptation will overwhelm you to start borrowing again. This way they are out of sight out of mind and out of spending reach.
If you do decide to keep one card, make a concerted effort to pay it off in full. This may mean making some sacrifices, but it is well worth it to dig yourself out of debt. Use if for emergencies, but make sure you have a clear definition of emergency. A great sale on shoes is not an emergency. Fixing your car so you can get to work is.
It is then time to begin answering those calls with a game plan in mind. Credit card companies are not fans of delinquent account holders, but they will work with you to get the money they want.
Work out a payment plan with them that you absolutely know you can pay. Realism is the foundation here.
You also need to be honest with yourself. The truth is that the credit card company isn't the bad guy. You borrowed the money, knowing that you were under obligation to pay it back. It is time to live up to your end of the deal.
Time allowed this debt to get out of hand, and time is required to get it back in control. This problem will not dissipate overnight.
This can be frustrating as you pay and see no immediate effects. But as you continue your efforts, you will see both your debt load decreasing and your credit score increasing. In a year, you could significantly decrease the amount you owe, or you could let it continue to grow exponentially. The choice is yours.
If you want meaningful credit repair, you need to acknowledge the problem and make a concerted and real effort to correct it. You can start little by little to restore your credit. The first step, though, is to be proactive and not let it overtake you. - 29866
You did not heed their warning. You tore that envelope open "just to educate yourself" if you "one day" decided to get a credit card. This is the worm on the end of the hook.
Credit card companies are masters in the art of temptation. They can draw you in with promises of incredibly low APRs, zero percent balance transfers, and more. Plus, who wouldn't want a card that you could personalize to fit your style? Recently, many credit card companies offer to design a card just for you, making it even more irresistible.
You may apply with the intention of using it strictly for emergencies. Isn't that a safe and responsible thing to do, you say to yourself.
After a few weeks of telling yourself that you have mended your spending ways, you finally get your new card. A host of financial burdens seem to melt away. You no longer have to worry about your car breaking down or where to get gas money - you can always borrow the money and pay it back later.
You won't be tempted by the personalized card, the great rates, or the high balance. You'll use it for necessary items and pay the balance each month.
Once you diligently read the terms, you get right on the phone and activate it. This is a great step towards financial responsibility.
Now that you have the credit card in hand, ready to go, your mind drifts to what you can buy with it. You'll definitely pay the balance in full each month, so a few little purchases won't hurt. And isn't it better to use it and pay it off than to let it gather dust in your wallet? A few small, inexpensive items, and then only for emergencies.
A few small purchases add up, and when you get your first bill, you are astounded by the accumulation. You can't pay the entire balance, even though it's payday.
So you change your plan. You'll pay the minimum balance this month, and really start using the card only for emergencies. But you continue spending. The next month, you can't pay more than the minimum once again.
You are driving yourself deeper into debt. Soon, your credit card will have reached its maximum balance. This can leave you in a financially vulnerable position, so you get yet another credit card. Without changing your spending habits, however, you are just perpetuating the problem. Soon, you have to maxed out cards and are making only minimum payments on each.
Maybe one more card? That way you can pay off the other two and make payments on one. But that spirals out of control, and you are making minimum payments on not one, not two, but three cards. And, to make it worse, your great introductory rate has expired. It has shot up to twenty percent. Don't even think about getting a late charge. Your "few small purchases" have turned into thousands of dollars in debt, and it's growing each day.
You fool yourself to prevent the reality of your increasing debt and lowering credit score.
You make plans to pay off the entire balance with tax refunds or bonuses. But these get sucked up in everyday purchases, and still your debt grows.
Your credit card bills take a backseat as you struggle to pay your mortgage or rent, utility bills, car payments, and more. You get notice after notice, and soon collection agencies are on your tail. You feel threatened and scared but have no idea what to do.
Cut the cards you own in half. Once you begin to pay them off, the temptation will overwhelm you to start borrowing again. This way they are out of sight out of mind and out of spending reach.
If you do decide to keep one card, make a concerted effort to pay it off in full. This may mean making some sacrifices, but it is well worth it to dig yourself out of debt. Use if for emergencies, but make sure you have a clear definition of emergency. A great sale on shoes is not an emergency. Fixing your car so you can get to work is.
It is then time to begin answering those calls with a game plan in mind. Credit card companies are not fans of delinquent account holders, but they will work with you to get the money they want.
Work out a payment plan with them that you absolutely know you can pay. Realism is the foundation here.
You also need to be honest with yourself. The truth is that the credit card company isn't the bad guy. You borrowed the money, knowing that you were under obligation to pay it back. It is time to live up to your end of the deal.
Time allowed this debt to get out of hand, and time is required to get it back in control. This problem will not dissipate overnight.
This can be frustrating as you pay and see no immediate effects. But as you continue your efforts, you will see both your debt load decreasing and your credit score increasing. In a year, you could significantly decrease the amount you owe, or you could let it continue to grow exponentially. The choice is yours.
If you want meaningful credit repair, you need to acknowledge the problem and make a concerted and real effort to correct it. You can start little by little to restore your credit. The first step, though, is to be proactive and not let it overtake you. - 29866
About the Author:
A great way to repair credit is with the free credit report site and getting your free credit report.
