Aug

Warning: Use Of Credit Cards Will Be Fatal To Your Financial Health!

People today are using credit cards more than ever. According to Wall Street Journal credit card debt has soared to $969.9 billion in July (2008).

We must get back to basics and use cash to pay for our purchases. If you do not like carrying cash then use a debit card, which is just the same as cash. Debit cards can be used anywhere a Visa and MasterCard are accepted. You also have the same protection on purchases as you would have with a credit card as long as you use the debit card as a credit card. In other words, when you use a debit card DO NOT use your PIN Number just swipe the debit card just like a regular credit card. When you use your PIN Number the transaction is just like an ATM withdrawal.

People must start to live on less than they bring home. We must stop charging our lifestyles and start saving our money. According to BEA (Bureau of Economic Analysis) American's savings was zero or possibly a negative from current income in July 2008. The misuse or over use of credit cards will eventually catch up to you, especially at the must inopportune time.

The Wall Street Journal reports that credit card companies are stepping up their collection efforts. Banks are outsourcing to independent collection firms to help with their collection process while still hiring new employees.

Collection agencies are also trying new techniques to get borrowers to contact them. One method is mailing phone or gift cards to the borrowers and when they receive the gift card they must call a phone number in order to activate it; however when they call it goes to the collection agency.

If you are over using your credit cards or are deeply in credit card debt stop charging now! Follow these five steps to help you gain financial control:

1. Call and close your charge accounts immediately.

2. Sit down and figure out a budget. A budget does not have to be restrictive; however it will tell you where you are spending your money. Spend every dollar that you make for the month on paper. No dollar goes unnamed!

3. List your credit cards in order by balance. Make minimum payments on all of them except for the smallest amount. The credit card with the smallest balance you want to apply as much cash to it as possible to pay it off as fast as you possibly can. Once it is paid off then applies that money to the next credit card amount on the list.

4. If all you can do is make minimum payments then you must find ways to increase your income. Take an extra job or sell things on eBay. Create ways to accumulate cash and apply that onto your debt.

5. Be very intense and have faith.

David Schindel shares his expertise and knowledge with people to help them eliminate debt and build financial wealth. Improve your quality of life by visiting David's Financial Wisdom Blog at www.EliminateYourDebtForGood.comhttp://www.EliminateYourDebtForGood.com