Credit Card Debt Lingering Forever

 

Credit Card Debt Lingering Forever

The Debt (2011 film) (Photo credit: Wikipedia)

Credit Card Debt Lingering Forever

Credit Card Debt Lingering Forever is the bleak prospect facing many adults according to some wide reaching new studies.  Credit is more widely available than ever before.  Contributing to the crisis are the high interest rates that make it so difficult to break the cycle of endless debt.  Attitudes towards debt and bankruptcy have changed radically in recent years.  The stigma that was once attached is no longer the social impediment it once was.  And student loans?  Fuhgeddaboutit.

Less often discussed in the concern about credit card debt lingering forever is the fact that there has been no increase in purchasing power in a generation.  Now add in the fact that a large segment of the population regards such luxuries as the latest incarnation of their favorite smart phone as a necessity rather than a luxury and you have further ingredients in this recipe for disaster.

It wasn’t always this way

Our grandparents paid off 100 percent of their revolving debt each year.  20 somethings today pay off 25 percent.  In the years 1980-84 adults were carrying $5,000.00 more in revolving debt than their parents.  Today it’s $8,000.00.  Smart debtors will try to get an installment loan at a lower rate of interest to pay off the credit cards.  This has the added benefit of helping your “mix of credit types” category which will benefit your score.  The problem of course is that your high credit card debt is dragging our score down which makes it hard to get the installment loan.

Regulators think the answer may lie in higher minimum payments.  I find this line of reasoning peculiar at best.  If higher minimum payments are made the debtor can simply continue to charge more up to the maximum limit of the card.  How does that help the situation?  As the economy improves (hopefully) attitudes  must change.  Young adults must realize that their student loans cannot be discharged in bankruptcy except in very rare and narrowly defined cases.  Those who are playing for that as an out better rethink their strategy.  But I want to experience life now.  I want to have memories and joy before I am too old to benefit.

“You Can’t Handle the Truth”  Is Jack Nicholson Right?

Life is long for most people.  A period of extreme frugality is not fun but it can have certain rewards. The extreme part of it does not have to last forever. There is a certain grim satisfaction to be obtained from taming the beast of debt.  One of my friends used to laugh at his nickname of “iron pants”.  Formerly a profligate spender he went into rehab.  When he came out not only was he saved from the horror of substance abuse but he made being a cheap skate a game.  He is now quite wealthy by most people’s standards.  He worked all the overtime he could.  He brown bagged it to work.  No expensive coffees.  Rented movies instead of feeding the multiplex monster.  You know the drill.  You don’t really need a brand new car.

Credit Card Debt Lingering Forever is for other people….not for you.

 

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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