Stop deficit spending! When you spend more than you earn is called deficit spending. The same rules apply to you and me. Using those nasty little plastic cards may be the “American Way,” but it’s a debt making way and creates plenty of fools each new day.
Today, the average credit card holder is carrying around $8,000 in plastic debt!
Spending yourself into such debt with a credit card is certainly very easy, as many of you already know. The reason is psychological. When you give that clerk a credit card, it’s just not the same as handing over a stack of green dollar bills. Would you as readily hand over a pocketful of ten-dollar bills as toss a credit card across a counter? Probably not. This one is a no-brainer for most!
Credit cards put you in debt and keep you there. Even for people with good incomes, paying your credit card debt down to zero can be amazingly difficult. In addition, make no bones about it; credit card debt will sap your financial strength just as readily as an open vein will deplete your physical body of its very life force. Using a credit card by choice can quickly turn to using it for need. Once you get to that point, you are already in trouble and it becomes time to get some help.
There is no secret in freeing yourself from the credit card game. You must take out a pair of scissors today, cut your cards in half, and begin paying them back, slowly but surely. Be sure to always pay more than the minimum amount due, even if it is only $10 more.
Once you stop adding to the debt, even small payments will eventually, add up. You can get out of debt, if you are patient and self-disciplined. Once your cards are history, you must adopt a strict pay-as-you go policy. Instead of buying now and paying later, save now and buy when you have the full amount. This is key to being able to save.
Once again, stopping credit-oriented consuming is one of the most powerful financial tools available to anyone today. Why not pick up this tool and use it for yourself?
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