Using Your Credit Card is a Loan! STOP BORROWING!
Credit Card Balances and Minimum Monthly Payments Choking You?
Using a credit card makes you feel richer than you are. Suddenly the extra $5,000 or even $10,000 available is equal to getting a raise. The average U.S. household carries a monthly balance of $10,000 in credit card debt. With an APR of 27%, the average household in paying approximately $3,000 a year in interest to their credit card provider.
Credit card companies extend credit, or rather, LOAN you money on the expectation they will be paid back. You are borrowing money from the bank or institution that has extended the credit card to you. REMEMBER: If you don’t pay it back, the bank wants something in return and it’s in the form of interest.
It is a BAD idea charging anything to a credit card when you do not have the money to pay it completely off when you receive the bill. Even small amounts remaining on a card costs you money. Money that you could be using for other important things, such as food, shelter, college education, or saving towards retirement.
A Typical Client Profile:
Mark and Mary have been married for over 20 years. They have three children and their oldest is in college. They do not spend money on elaborate vacations or expensive clothing. Their house is nice is but not the largest on the block and one of their two cars is almost nine years old. Mark is an executive for a large company and his salary is approximately $300,000.
It is enough money for Mark to wonder why they live paycheck-to-paycheck and don’t have a small savings account for minor emergencies. He is the one who contacts me. He is concerned that they have credit cards with balances that cannot be paid off and seem to continue to grow!
We can help by determining where your money is being spent.
Do not wait. Do not put your head in the sand and expect things to change! The quicker you make changes the faster you can stop this downward cycle.
Is This You?
Do you have five or more credit cards each with an outstanding balance that has not been paid off? Have you opened an additional credit card lately to expand your credit line. You usually are on time with your minimum payments and occasionally throw some extra money towards the balance. You may not feel like your spending is out of control.
This may happen for several years and your balances continue to grow. It may not happen for awhile, for some clients it’s several years, others it happens within a year. Sooner or later, you are unable to pay the minimum for all of your cards along with your other financial obligations with your current income.
Do not wait another day to contact us for help.
You have now limited your choices. It may mean declaring bankruptcy. It may mean that you might have to take money out your retirement. Or perhaps borrow from your family or a friend.
Thanks for checking in.”