In my daily conversations with people regarding their debt problems, there is a very discouraging theme that I encounter. Too many people were supplied with too many credit cards. All this available credit with all this spending power in their wallets gave people a false sense of financial security.
Some people spread out their spending on multiple cards. This kept the minimum payment low on each card, but they failed to realize the total debt they were building. At some point, the reality sinks in regarding their total debt. For some, an unforeseen hardship occurs, making it hard to keep up on the payments; even the minimums.
That's when the idea hits: Just borrow some credit from one card to make the payments on another card. This way, there is no out-of-pocket money this month. Then can catch up in a month or two. This seemed like a bright idea at the time, until the following months rolled along, and they did not catch up. In fact, just the opposite occurred as they continued to borrow from some credit cards to make payments on others.
We have all heard the common term for this; "Rob From Peter to Pay Paul". This vicious cycle eventually leads to financial disaster. Sure, the payments are being made. But the growing interest charges and balance transfer or cash advance fees will put you much further into debt.
I have talked to many people caught in this trap. Some have juggled well over $100K of debt this way. Ironically, most of these people are proud of themselves because, as they tell me, "I've never missed a payment. My credit is spotless". Unfortunately, they eventually run out of credit and their financial house is about to collapse.
Of course, they usually are not speaking to me until they realize the situation they are in. They realize that unless they win the lottery, they will never pay this off. Note: Chances of winning the lottery in hopes of paying your debt is even riskier. Please don't get caught in that trap either.
Once in this trap, people go looking for a way out. Some people have too much income to declare bankruptcy. A consolidation program may lower the interest, but it still needs to be paid. A settlement for 50-60% of the balance may be good, but is still out of the financial reach for many people struggling with debt.
Instead, consumers can turn to debt elimination. An actual elimination program enables you to legally discharge 100% of unsecured debt without bankruptcy, consolidation, or refinancing. This gives the consumer a fresh start in their financial lives. In addition, the education that a person receives with a good debt elimination program will help ensure that they do not get caught in this credit trap again.
For many, the idea of being able to eliminate their debt seems too good to be true. Naturally, most people are immediately skeptical. However, it is important that people have an understanding of what credit card debt really is, what really happens when you obtain a credit card, and what takes place when you use it. Only then, will a person understand how elimination can be accomplished.
Since bankruptcy may no longer be an option for many people, consumers and small business owners are now finding this type of debt relief is actually obtainable. Also their credit scores are higher after completing this process.
It is possible to get new beginning on your financial life. You could call it a "do-over". Best of all, there is no credit-sting or shame of bankruptcy".
About the Author:
Jim Vrana's mission is to educate and empower people to overcome their financial challenges. The time-tested legal procedures used to eliminate
credit card debt have been used by thousands of people with tremendous success.
Contact:
Jim Vrana
True Debt Advisor
(800) 637-1785
http://www.TrueDebtAdvisor.com
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368
Date Published :
Feb 16 2009