Why You Should Eliminate Credit Card Debt From Your Life
It is unfortunate but many people get into trouble with their credit cards because they think that by using them they are actually enhancing their lifestyle.
This cannot be further from the truth.
In fact when you start to carry balances on your cards you start to erode at your way of life so it is very important that you eliminate credit card debt completely.
What many people fail to realize is when you use a credit card instead of waiting until you have the cash to purchase something you actually end up paying close to 30% more than the actual purchase price of an item.
For example let's say you want to buy a new television.
The purchase price of the TV is $799 and you use a credit card that has the current average interest rate of 13.
42% and you are going to make the minimum payment each month of $25.
In the long run it is going to take you 4 years and 3 month to pay off this debt and you are going to pay $1028.
73 for the television.
This means that you have paid $229.
73 in interest.
This is only one purchase made on your credit cards imagine if you begin adding more and more expenses on your cards.
Your life style begins to suffer because you have lowered how much cash you have on hand.
You work hard for your money; don't you have better places to spend that $229.
73 then giving it to the credit card company with nothing to show for it? This is why it becomes so important to eliminate your credit card debt.
One of the hardest things to do is to work your way out of debt.
It is much easier to get into debt then it is to get out of debt.
Taking a hard look at your spending habits and realizing that you will live a much better life style when you eliminate credit card debt from your life is a good place to start.
This will give you far more money to spend on yourself or family in the long run.
This cannot be further from the truth.
In fact when you start to carry balances on your cards you start to erode at your way of life so it is very important that you eliminate credit card debt completely.
What many people fail to realize is when you use a credit card instead of waiting until you have the cash to purchase something you actually end up paying close to 30% more than the actual purchase price of an item.
For example let's say you want to buy a new television.
The purchase price of the TV is $799 and you use a credit card that has the current average interest rate of 13.
42% and you are going to make the minimum payment each month of $25.
In the long run it is going to take you 4 years and 3 month to pay off this debt and you are going to pay $1028.
73 for the television.
This means that you have paid $229.
73 in interest.
This is only one purchase made on your credit cards imagine if you begin adding more and more expenses on your cards.
Your life style begins to suffer because you have lowered how much cash you have on hand.
You work hard for your money; don't you have better places to spend that $229.
73 then giving it to the credit card company with nothing to show for it? This is why it becomes so important to eliminate your credit card debt.
One of the hardest things to do is to work your way out of debt.
It is much easier to get into debt then it is to get out of debt.
Taking a hard look at your spending habits and realizing that you will live a much better life style when you eliminate credit card debt from your life is a good place to start.
This will give you far more money to spend on yourself or family in the long run.
