End The Credit Card Debt Cycle

By Debbie Wilson
LoanPage.com Columnist

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Over the past 15 years, American's consumer debt has grown more than three times faster than their net wealth accumulation. And what that translates into is an extremely large disconnect between people's understanding of their true income/debt and what they can actually afford.


Credit Card Debt Made Easy

We live in an instant-gratification lifestyle. Credit comes easy, but we lack the education and desire to effectively manage our debt and financial decisions. This is partly due to the fact that most financial service companies are quick to satisfy your borrowing desires. You're less likely to get turned down for a mortgage or unsecured credit card because lenders are less concerned about your ability to repay your debt. Loans and credit card balances are often resold to other institutional investors.

Reversing Credit Card Debt

To break the credit card debt cycle, you'll need to first admit that you have a debt problem. Warning signs include debts with double-digit interest rates, accumulation of more than a quarter of your credit card debt for desires rather than home or food needs, or paying off one credit card debt with transferred balances from another card. Once you've accepted your credit card debt, you can take day-to-day steps to consolidate your cards, lower your interest rate, and make consistent monthly payment amounts. With a payback plan firmly in place, you can concentrate your debt consolidation efforts on utilizing your credit card less and paying with cash instead. And remember, just because a financial institution is willing to give you a mortgage loan or unsecured credit card doesn't always mean you have the financial backing to afford it!


About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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