Tuesday, April 28, 2009

Debts and Credit Cards : Can we escape these traps?

credit-cards-debtsWe chose to be entrapped by these, don’t we?

Debts and credit cards have not only became a part of our lifestyle, but we have also managed to sediment it into culture. Getting into debt in particular, has become a cyclical aspect our financial life. We enjoy the purchases, then, pay the bills. Then we purchase more until we are unable to pay no more. Then we get a loan or worse, use our business credit cards to cover for the bills –it is a cycle. Dan Caplinger observed:
When you are in debt, your finances can get overwhelming in a hurry. Just coming up with enough to make your minimum monthly payments on loans and credit cards can push you to the limit.
Should I say more? He did not end there, in fact he admonishes us:
…you can escape the debt trap. You just have to go a bit further and find some extra money to pay down your debt. Once you do that, it's just a matter of time before you come out debt-free.
What does your credit report tells you about your financial lifestyle? Poor huh. What I can see there, it seems that we can’t live with debts, and we can live without them. Ironic huh. Okey, I am not trying to judge or ‘condemn’ you there. What I am trying to say here is manage your finances –and that includes those credit cards and personal loans. You might want to check free credit report from time to time to monitor your progress. Also on the side, beware of identity theft when you submit your personal info online.