Credit and Debt Blog

With the economy in its current freefall, many of us are laid off from our jobs and forced to use our credit cards to supply us with the basic necessities of life, hoping that we will be recalled to our previous job before the bill becomes due.

Many people too who are not laid off of work have the same problem. They are compulsive spenders who receive credit cards and spend them to the limit on things impulsively, many items only also to “keep up with the Joneses” or try and show people that they are “better off” or “richer” than they really are.

These are two of the many reasons that all of us end up with credit card debt.  But by far it is the lure of getting a satisfaction of “getting it now”, as opposed to planning and saving for the things we want so as not to put a strain on us and our wallets by spending frivolously. I write this article with the hope that the many people who are facing this type of debt can discipline themselves to change.

There has been so many people trying to just get by in this time, and it is so sad that they lose not only their jobs, but their homes and vehicles, everything essential for living. But there are others who with credit cards spend, spend, and spend without regard for paying it back.

The vast majority of people that travel, have gotten used to spending for their monthly living needs with the credit cards and setting a limit for each month, so that they can get airline “miles” for travel, and then paying the full amount every time the bill arrives. This of course, is now being done by those who are still employed even though our economy is spinning downward and out of control. This now has become for many the “dream way” to do things, but without sufficient income from employment they use their credit cards just to live, until they hit the limit of their card(s). To pay for housing, vehicles and food with credit cards in this day and age has almost become the norm.

So what can we do when faced with the overwhelming credit card bills that arrive each month? A lot of people are paying the minimum amount necessary, and struggling just to do that. This is due in part to the minimum wage jobs they are forced to work at because their good paying jobs have gone away.

One way to help get the debt eliminated is to pay not just the minimum each month, but add a few dollars (even $5). Well “I never have enough to do this” you say? Here are a couple of possibilities. Many of us, no matter what our circumstances, will take some money out for “entertainment” or dining out. Unfortunate as it is, we have to sacrifice this “play” money to pay down our credit cards each month. Many people have such “luxury” services such as cable or satellite services to the max too! They are lured by the companies for special low price programming, only to find that after the “trial period”, the cost of the services has more than doubled! Some cable services are getting over $100 per month for their services! Imagine how much faster you can pay down that credit card if you sent them that much more every month! Cell phones are another “luxury” many of us have. Suspending your services so you can use that money to pay credit card debt down.  Also, another way is to shop for things like bigger packages of meat that can be split up and frozen for many dinners. Buying off brand canned goods, which in most cases are as good as the name brands. Avoid buying things like sodas, steaks, and special desserts for the time being. Sending even this little bit to the credit card is better than nothing.

And lastly, the biggest way to ensure that it gets paid is to pay the amounts you get with things like our income tax refund. This little “windfall” however makes some of us, who have been deprived of the luxuries in this bad time, to go out and spend it all on things, and get all the items and outings  we have not been able to do or buy. This is also an area where discipline and courage come into play. It will be difficult, but making this “lifestyle” change will not only just pay your debt down or pay it off, it could save your credit. Good credit is essential to buy large items like cars and even houses. When the economy does turn around, I foresee many people getting their jobs back. Life will again become somewhat easier for most of us hopefully

Positive determination and commitment to accomplish this goal is the best thing you can do. Stay focused and when the urge hits to “have some fun”, remember and think about the longterm outlook for you and your family, and the affects frivolous spending will have, not only for yourself, but more importantly, your family. Don’t despair, things will get very much better for you, and you will feel good about yourself when you are not receiving these high credit card bills! Lastly, the best thing to do is to cut up your credit cards so that temptation doesn’t take over common sense. Many people who have and keep credit cards freeze them in a large block of ice! As funny as this is, it works! The ice is only thawed if there is an emergency such as a large car repair bill! It is funny true, but it works, and it seems well worth the trouble! Good luck and all the best to you and your family.

— By Cathy Jones