Page 34 - Book1E

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Too Much Credit
• You tell yourself it’s okay to borrow because when you get a “break,” you’ll get out of debt quickly.
Regardless of where debt originates, eliminating the debt requires the same of everyone—sacrifice. This is true for anyone who has something he wants to accomplish, whether it be an athletic, business, artistic, or financial goal. Achievements are made through sacrifice, but the rewards are always worth it. In the case of debt elimination, the sacrifices might include taking a second job, downsizing a home, reducing entertainment spending, paying with cash, and spending money on “needs” only.
Credit Cards—The Illusion of Convenience
Credit cards create financial trouble for many consumers. With self- serve gas pumps, self-check registers at the grocery store, and convenient card swipes in nearly every retail establishment, it can be easy to forget just how much you’ve charged. Your credit card statement soon shows over-limit and late fees and an increased interest rate. It can become increasingly difficult to make your monthly payments.
Do you identify with any of the following?
• You use cash advances from your credit card to pay for everyday living expenses such as utility bills or cell phone bills, etc.
• Cash advances from one card are used to make a payment on another.
• You are continually transferring balances from one card to another.
• You can barely make your minimum payments.
• Some of your credit cards are “maxed out”.
• One or more accounts have been closed by the creditor.
• Soon after opening an account, you find yourself making late payments.