Avoid Credit Card Debt

Why should you avoid credit card debt?

I recently read an article that stated the consumer debt problem is not as big as we think. Most Americans are not swimming in debt and a vast majority can easily handle the small amount they do have.

My guess though is that if you are searching for how to avoid credit card debt, you have more than you are comfortable with.

It appears that being in debt is a standard these days. Every time you check out at a store, or go to the bank you are offered another credit card.

If you are like me you learned growing up, that debt is normal. It’s easy to just slap down that plastic and not think about it.

But debt is evil! That may sound harsh but it is true. Especially true of credit card debt. The reason it is so bad is because they lie to you and manipulate you. It is done on purpose to suck your income out of your hands.

These big credit card companies do not care what your income is, or whether you can handle more payments and still eat. In fact credit companies will knowingly loan you more than you can easily repay.

First of all you are target marketed to buy things you do not need. But you are sold on it because it “looks great,” “will make you feel better,” “will make your life easier,” “will make you more popular,” “will make you look more successful.”

A close up view of credit card numbers

Be honest how many extra kitchen gadgets do you have stored in your attic, sweaters that you don’t wear, furniture that just takes up space?

I know my closets are full of things I don’t need but was absolutely sure I did at the time. Like extra cutting knives, pots, clothes, etc.

But what’s the worst part of having all the extra stuff, a lot, or most of it is on credit cards! Which means it cost you even more than you think it did.

Let’s say you bought a sweater for $50. If you put it on your credit card at 18% interest rate, it really cost you $236. I hope that sweater was worth it.

What about that nice flat screen you got a great deal on at $899 (not counting the surround sound) It really cost you $4248.

But it seems so simple doesn’t it an extra $30/mo. Here and $27 there. That’s where you get sucked in.

Avoid credit card debt simply because things cost more when you use it. That oversimplifies it. But that’s the main point.

The reason you are drowning in debt, the reason you don’t have enough to save for retirement, the reason you are searching this topic is because the credit company lied to you.

They told you that you could handle it, and you believed them. But debt is so much more expensive than you realize.

Let’s go into more detail about

My big tip for the day Avoid credit card debt and save money!

Copyright© A Debt Free Life 2007.

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