Credit Persuasive

Did you know that the average credit-card holder in this country has ten cards, and the average family owes over $7,500?

That's a record. And did you know that one dollar of every three in consumer debt is in credit cards? The fact is, credit card debt is rising faster than Americans' income, and more folks are falling behind in their payments. So today I'm going to look at: why credit cards are a problem, and what you can do to make sure it's not a problem for you.

The plain fact is that a lot of people are in trouble. And to get out of financial trouble, they're using credit cards to get over the hump.

Credit cards are common among university students in the United States. A study by professors at Iowa State University found that 76 percent of students hold three or more credit cards while 40 percent had six or more. And even though rates start from 5%, the typical credit cardholder pays 17.66%. Many of us get into serious debt, and that's usually credit card debt. And it won't necessarily be because we're just plain reckless. Sometimes it can happen by charging up your cards with essentials in an emergency. Suppose you've been a been victim of downsizing. While you're looking for work, you might be tempted to put groceries and rent on your cards and hope that a job will come along that will help pay the bill. Or you might not be making enough to cover basic needs and using credit cards to make up the difference. Unfortunately, many people over-extend themselves and get so deeply in debt that managing their loans becomes a second job. Not only are normal bills Ð'- the rent, the utilities, the insurance - piling up, all with different payment dates, but they also have the credit cards and car loans to pay. In the end, you find you're in too deep, and don't know what to do.Ð'

So what can you do to make credit cards less of a problem for you?Ð'

If you find yourself with a large outstanding balance the best advice is to STOP CHARGING. It's no accident the minimum payment is low. It keeps you from noticing the high interest rates you're paying. On a 21% credit card the minimum payment on $1000 would keep you paying for around 10 years! Longer if you keep charging. In short, minimum payments are not a good deal. The next step: look for ways to pay off your debt, even if you have to use savings to do it. It's always best to pay off debt if the credit card interest you're paying is higher than the interest you're earning on your savings. There's no sense having a thousand dollars in the bank earning just 3% interest when you can use that money to pay off a credit card balance piling up at 21%. If you don't have savings to pay off your debt, then you can apply for