As of 2005, the number of cardholders who are failing to pay their bills has continued to increase. Families throughout the nation are deeper in debt than ever. In fact, 1/3 of Americans have absolutely no savings in their accounts. With no money in savings, it is easy to see why just one bump in the road has made it impossible for so many to pay their bills on time.
If you are only paying your minimum payment, you aren’t alone. In fact, 40% of credit card holders are only paying this much. While misery may love company, this isn’t the type of company you want to be a part of. If you are only paying your minimum payment, you will take years to pay off your debt and you will pay hundreds, perhaps thousands, of dollars in the process.
There are many factors at play when it comes to spiraling debts. In part, our culture is one that encourages spending. The media barrages with messages to spend, spend, spend. In addition, our own government encourages spending in order to help create more jobs and to provide a boost to our economy.
Despite these logical excuses for being deep in debt, the responsibility really relies in you. Failure to accept this responsibility has led to thousands of people seeking debt counseling and help with restructuring. If the government handled its expenses in the same way, it would soon be bankrupt!
If you use your credit cards wisely, it can help you get out of debt. But, you must be responsible with your spending if you want to avoid getting lost in your debt.
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