Getting out of credit card debt
I had my first credit card when I was barely out of college.At the time,having your own credit card was a status symbol.everybody was figuratively dying to have one.I was one of those.So imagine my delight when I first held my credit card on the palm of my hand.It was sheer heaven.
Today, more than a decade after, I am dying to get out of my credit cards.Yes, I now have multiple credit cards.But I am no longer jumping for joy.I know now that having credit cards simply mean having more debts.
Blame it on age or probably the never-ending monthly card payments, I am no longer happy with my plastics.
I want to get out of them.
Facts in having Credit Cards
It is common today that most of the employed individual or even unemployed one carries a credit card on their wallet. Is it because they need to have one or because they want signify or implied something? The answer to that question probably lies on the person owning the card.
Credit card as we define it is a plastic card carrying a magnetic strip issued by bank or a business entity authorizing the holder to buy goods or services on credit. Owning credit cards carries both advantages and disadvantages result. Some of the advantages of owning credits cards includes (1) you will be able to establish your credit standing, (2) it is much safer to carry credit cards than cash especially, (3) you can be able to maximise the value of money wherein you will only pay the total amount on your due date which is around thirty days from the purchase date, (4) you can use it during emergency situation, and (5) it signifies that you have high social status.
Disadvantages on the other hand of owning credits cards includes (1) it carries high interest and finance charges once you are unable to pay the whole amount due, (2) it might result to your poor credit outstanding once you failed to settle the entire obligation, (3) additional annual expenses brought by the annual membership due and (4) you might not be able to control your expenses especially if your are impulsive.
Considering the positive and negative effect of owning credit cards, is it advisable to have one? As for me, having or not having a credit card is not a big deal. Everybody can have many credit cards as he wants, provided he knows the implication of having it and be able to settle them when it becomes due. Just remember that every swipe you made using your credit cards carries responsibility. So if you think you need one…go ahead…enjoying swiping your cards!
In debt without knowledge
Have you ever tried to borrow money to others? I’m sure most of use does. But what will you do if you just knew that you have debt without your knowledge? I’m sure it will be a big issue.
I really don’t know the ways to borrow money in some lending business or person. But just recently I just learned there are people in lending business that allows you to borrow money even you don’t give your own name! It was a shock, yes.
I think that was something wrong. I myself, if learned that someone uses my name just to borrow money and then this particular person who uses my name can’t able to pay that debt for sure I will be really get mad. Because for sure if this lending company sends someone to collect the payment it will be my name who will put to shame.
I am not sure if this acts were being done by other people in other places but this practice was so ramphant here in our place. Everyone here is taking precautions just not to drag thier names into shame. Imagine you will have debt without your knowledge? Hmmm…so disgusting!
Fixing Finances: A challenge worth taking!
Life nowadays is not that easy. Prices of commodity is in the upward trends yet the income of an individual almost remains the same. You are lucky enough if you have an employer who is generous to give increases. But considering the current economic condition, it is more often that not that company consider their financial condition first before looking at it’s employees status.
The current condition makes me realize to study thoroughly my financial position. Considering the factors like the future of my kids, the obligations to settle and family needs to satisfy gave me the idea to start Fixing my Finances. Being a Finance graduate, I thought all the while that this is an easy task to do. But after series of analysis and computation of my current expenses and reconciling it against my income, I found out that I’m just on a break-even situation. One false move and I’ll be at negative figure which is a horrible thing to experience. Yes I have to really do something to arrange my finances.
In order to fix my finances, I believe that I have the following option which is (1) to find means of increasing my income and (2) reduces my expenses and work within budget. As of now, I’m working on those two options to have a better financial condition.
I’m now on process of increasing my income, by looking for additional client by providing finance related work. I also started looking for on-line job that might give other income. Lastly, I also start to consider to venturing in a business with minimum capital.
Reducing my expenses is another option I intend to make. At present, I am not using my car to avoid higher expenses brought about by high pump prices of gasoline. I now spend wisely and buy only the things that we need. We also started lowering our electricity bill by doing energy conservation measures. I now limit my gimmick and drinking session which will generate big savings.
Though I may not perfectly fix my finances by doing things I’ve mentioned, I believe this is good start to use wisely my earnings.