Is It Possible To Avoid Credit Card Bankruptcy

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Tuesday, November 18th, 2008 Subscribe To Our Feed

There was a time when credit wasn’t very easy to get. Borrowing money for any reason was actually considered shameful, and being “in debt” was simply scandalous. If people wanted to buy things that they wanted or needed they simply SAVED; they did without those things until they could afford to pay for them in cash. It’s kind of strange, how things have changed in the span short of a life time!

In pursuit of wealth, those banks have used each marketing strategy possible to make you want something now, not later, after all why wait a lifetime when you can have it now!

Simply put, anybody can get a credit card. It seems you don’t even need a social security number and to prove the point, one man in what must appear to have been a fit of rage in California answered one of those “pre-approved” ads that came in his email and applied for a credit card in his dog’s name.

Under “age” he inserted the number “3″ and where it asked for the social security number he entered 000-00-0000. The card was issued.

It’s frightening that people have become brain washed into not thinking about the future consequences of borrowing money using credit cards. It is so, so very simple for people to get into spiralling debt with credit cards.

The financial institutions do their jobs well, they make you believe that using a credit card is not like you’re borrowing money, but that’s exactly what you’re doing. If you use a credit card to pay for dinner and a movie, you’ve borrowed money to pay for the dinner and a motion picture, and the bill will come due at the end of the month. If you don’t pay the balance on a credit card in full, every item that you purchased just costs more because you’ll be charged interest. As they state it is easy to borrow – but wait … paying back from funds that you don’t have is never easy.

Or put it another way, if you don’t make the minimum payment on time, you’ll be charged penalties and additional fees.

I know to you - I don’t sound like I’m crazy about credit cards. I’m really not, but increasingly they are a necessary evil in today’s mobile world. You can hardly buy online without using one.

So what’s the solution? Well here are some suggestions:

The answer is to get ONE credit card. Come the end of each month, pay the entire balance on the card.
Do NOTuse credit cards for each day expenses.
Don’t purchase groceries or pay for the dinner and motion picture with a credit card.

Majority of all bankruptcies filed today are directly related to credit card abuse. You can overcome that. Students beware of this pitful

The sad thing is that my 7 year old son recently stated to me, dad why don’t you buy me the personal game using your credit card – I had to take him to one side and give him a simple explanation of the dangers of borrowing and the fact that you’ve to pay it back.

It is with much regret that some of us will wonder where did it all go wrong - the lessons of our parent’s generation we’ve failed to heed – live within your means.

Meanwhile, the shareholders of these financial institutions and there directors continue to become richer at the expense of those who fallen into the debt trap.

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