Wisdom Farms

Wise Words from my Wife

Debt, the Taskmaster!
By Tracye Gano

Do you feel like a slave to debt? Do you dread the mail? Are you finding yourself overwhelmed with credit card bills?

If you answered yes to any of those questions; you are not alone.

Many families find themselves drowning under the wait of debt. Debt is one of the top contributing factors to marital strife. It can suck the joy out of life, and make even the calmest of people stressed.

There are different types of debt. Credit card debt is probably the easiest debt to incur, and the most dangerous. The impulse to buy what you may not need on credit has become an American way of life.

Credit card companies push their wares on unsuspecting consumers in just about every venue. You have probably seen the little tables in department stores; here fill out our credit card application and you get a discount on your purchases plus a free trinket. This sounds good; until you get the bill. The mail is full of credit card applications, the Internet offers you “credit” in your email. We are inundated with messages of  you can have it all now, just put it on credit.

The temptation never seems to stop.

Credit card companies are now preying on our young college students; offering them “free” credit even though they have no means to pay back the debt. So for many the never ending debt merry – go – round starts very early in life.

If you get behind on your payments it not only affects your credit rating adversely, but will also cost you substantial amounts in late fees.

Many credit card companies offer low introductory interest rates, or even zero interest rates to get you hooked, but if you are even 24 hours late on a payment they can and will hike your “low” interest rate up to 24 + %.

I have sat down in the past with families paying 29 % interest on their credit card balances. When your  percentages get this high it is next to impossible to get that debt paid down by paying the minimum payments.

There are solutions, but it takes discipline. Next month I will lay out some things you can do to get those credit cards and other debt paid off once and for all. As a financial coach I urge the families I sit down with to pay their debt off, and cut up those credit cards.

Romans 13:8 (KJV) Owe nothing to anyone except to love one another;
for he who loves his neighbor has fulfilled the law

Wise words

09:21, Thursday, March 8, 2007 .. Posted by JustaSEC

Definitely wise words! We've been on the road out of debt for a few years and it's such a good feeling everytime one of those things are paid off!!