|
Author: Roy Thomsitt Article source: http://www.financearticlesonline.com/. Used with author's permission.
Credit card debt is a major social problem in some Western countries. To rid yourself of credit card debt, it is best to recognize the problem as both a social and individual problem.
If you are overburdened with credit card debt, or are in danger of becoming so, it is very easy to see it purely as an individual problem, one from which you may be suffering both physically and mentally. Worry and stress can be silent marauders into your physical and mental well being. Debt can undoubtedly cause both worry and stress, not just to the debtor, but their immediate families too.
Why Should You Care About The Social Causes of Credit Card Debt?
If you wish to overcome your credit card debt problem, you will benefit from removing some of the social influences. They are a major influence on the way you react, think and behave. Remove the social influences, and you take a big stride in your journey to eliminate your debt.
I do not, of course, mean remove the root causes of credit card debt. You cannot do that. What I am referring to is to prevent the social influences from penetrating you and taking over your life. As an individual, you have the right to resist social influences where they are harmful. The liberal, unfettered use of credit cards is an influence you will benefit from resisting.
Just by being fully aware of the social influences, you have made an important step. You will more likely be on your guard, and by asserting your individuality, you are more likely to overcome or prevent the credit card debt problem.
What Are The Social Causes Of Credit Card Debt?
You could spend years analyzing the credit card debt problem. Here are just a few of the influences at work in the society around you:
1. Credit card interest rates are high, therefore the profits can be high. Banks and other credit card issuers are after their slice of that big money, including from you. They can therefore justify big marketing budgets to get your money. I deliberately do not say "get your business". You will resist better if you think "they are after my money."
2. It is very easy to get credit cards, multiple credit cards in fact. Issuers of credit cards make it easy for you, if you have had no debt problems in the past. If they seem to take it lightly, it is understandable that their customers do too. But remember, they take the risk factors into account when setting interest rates. That's why they are so high.
3. Your friends, neighbours and work colleagues will probably all have multiple credit cards, talk about them and flash them around from time to time. That can all influence your own attitude to credit card debt.
4. Depending on what country you are in, yours may be a "have now, pay later" society. Immediate gratification can take precedence over common sense. If everyone else is doing it, it surely must be right? Wrong. Especially if the interest rates are too high.
5. You see other people buy new furniture, go on exotic vacations, or go out to expensive restaurants all the time. Even if you never know if they are doing so on credit card, you may want the same. But you do not have the immediate cash, so what do you do? Jump on the credit card train? That is what your society may be pushing you towards.
How To Resist the Social Pressures To Succumb To Credit Card Debt
Due to the overwhelming pressures of the credit card society, it can be quite a difficult task, initially, to change your own attitudes. But by asserting your individuality, you can steadily eliminate the social conditioning. It is really a matter of how you think in certain situations. You are in charge of the way you think, so all you need to do is what is natural. Not what everyone else seems to be doing around you, but what is natural to you as an individual. Think to protect yourself, assert yourself, and to look after your financial well being.
Here are a few ideas to help you:
1. Whatever type of loan you may apply for, you are after just one product, money. Different types of loans are marketed as separate products, in different packages, but to you, they should all be one: money. The money, once you have it, is all the same quality. A dollar is a dollar, a pound is a pound, a euro is a euro. Having engrained that upon yourself, knowing you are just after this single product, you need only look at price. Credit card debt is very, very expensive. The interest takes money from you, and reduces your assets. If you need a loan, you want the lowest possible interest rate, one that does not unnecessarily leech your assets.
2. A credit card should only be used as a convenience to pay if you have no cash on you, knowing that you can pay off the balance before interest charges kick in. Many cards have an interest free period. Never use credit cards as a loan beyond that free period. Others do, but you have no need to. You can eliminate that idea altogether. You are creating a new habit that will enhance your financial situation, and resisting an old common habit that would ultimately damage your finances.
3. Plan all your borrowing. Sit down and write down what you absolutely must buy over the next year, and add what you would like to buy. Total the cost. Write down a budget for each month, making sure you have listed all your regular expenses that are fixed and unavoidable, and those over which there is some flexibility. Compare that total with your income. If you have a surplus, then you can think about those extra purchases you had in mind. If not, don't think any more about them. You cannot afford them, and cannot afford to borrow.
If you have a planned surplus, then maybe you can get those things you wanted. If you can afford all of them, and there are quite a few items on your list, then forget about getting a loan. Be patient, resist the have now pay later syndrome. You can save interest and buy a bonus item with that later if you really must. You are in a great position to pay cash. Prioritize the things you want to buy, and note their cost, and then work out a plan by which you buy one item at a time spread throughout the year. Why pay the banks credit, when you can pay cash? You will save not just the interest but maybe get cash discounts. Cash gives you control. With credit you are subservient.
If, on the other hand, there are just one or two more expensive items you want to buy, it is time to compare options and test your resolve. If you save your surplus each month, consider how long it will take to have enough for item 1 and maybe item 2. Are they really urgent? Probably not. Maybe you can save for one after 4 months and 2 after 9 months. That way you are getting into the habit of saving, and living off cash. Cash is king. Your finances will start to look good over time, and you'll start to feel proud of yourself. You will feel in control.
Remember too that by saving, if an emergency comes up, you may have the cash at hand instead of reaching for that expensive credit card.
You really cannot wait and save? That is a pity, but now check out all the loan sources suitable for your intended purchases. Get the best plan, the best interest rates, and apply, with the intention of using that loan just for what it is intended, and to pay it off within the time scale of the spending plan. In the example one year. Stick to that discipline, and your credit is still under your control. And, you have avoided reliance on expensive credit cards.
4. Remind yourself every day that you are only going to use your credit card when you have no cash on you, as a convenience, and you will repay it before interest starts to accrue.
5. Also remind yourself every day that sometimes it is good, or even necessary, to be that bit different, and to resist social pressures. Imagine all the credit card lemmings heading towards the precipice, while you relax in your counting house, counting out your money. Real money; your assets. Anyway, it's great sometimes to be different, it really does make you feel good about yourself.
6. Never, ever feel you have to buy something just because a neighbour or friend has been boasting about theirs. Envy and jealousy are viruses that minimize your individuality, and can, in this case, damage your finances.
Resisting the pressures of the credit card society will be a lot easier once you have set your mind to it, and started to feel the benefits. Enjoy the process, and you will be a cash convert for the rest of your affluent life. Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
The Boss is DEAD!
Some of us are born into families with "it", some of us are just driven over the edge to "it", and some of us crave "it", but just haven't figured out how to at...
The Right Beauty Supplies Will Make You Look Great!
Use beauty supplies the right way and yours could well be the face that launched a thousand ships! Growing old may be mandatory, but looking it certainly isn't....
Build Links, Build Business
Increasing your online business hinges on your ability to optimize your web page for the search engines. While different search engines look for different thing...
5 Tips for Getting Your Life Back On Track -- After Taking a Wrong Turn
We've all experienced moments in our life when we hear ourselves say "YES" to a job, person or situation we know deep in our heart isn't right for us. And still...
Publishing Special Reports And Ebooks At No Cost
So you'd like to start publishing special reports and ebooks to use as marketing tools and to sell as products. But you have no budget to get this new venture g...
Tips On Refinancing Your Home - When To Convert To an ARM
Here are some tips to consider when refinancing. Know when it might be wise to convert your mortgage to an adjustable rate mortgage.
How to Draw Icons or Images on a Mapserver Generated Map
In many situations it would be useful to add images or icons to a map. A typical application is to show on a map the weather of the current day or of the next d...
Are You a Real Estate Investor or a Circus Performer?
If you've ever been pulled in a million different directions while managing investment property, all the while praying that the rent is paid on time, there may ...
Legacy to Your Children
With these three tools your children will learn how to define what is important in life, how to minimize excuses and take more responsibility, and how to take a...
Thinking of Buying Hits To Your Website? Think Again!
"Generate 30,000 Targeted Hits"; "Email 2.5 Million Daily"; "Submit Your Ad to 3 Million Classified Sites"... I could fill pages with those promises. When I sta...
Warm & Toasty Outdoors with Patio Heaters
Would you like to know how to enjoy the pleasure of outdoor living all year round on your patio deck or in your garden? Your family and friends will love it. Th...
Nonsense! Why Do I Need a Website?
Still don't want to spend the money to have a decent website built? Do you question if the benefits will outweigh the costs? Learn how you might be passing up a...
The Top 5 Issues Facing VPs of Sales
Every year millions of dollars are spent investigating and pursuing ways to grow sales. Any business owner knows that sales are the life blood of the company. I...
Integrity and Marketing - Finding the Right Balance
When marketing themselves to leads and prospects there are five common mistakes people make, all which can be easily avoided by finding the right balance to mai...
Cordless Impact Wrench - Not the Same Tool as Your Cordless Drill
If you thought your cordless drill was the same tool as a cordless impact wrench - think again!
Create Warm Memories with Holiday Traditions
Easy holiday traditions suitable for busy families add joy and closeness to the season. And, the memories will last a lifetime.
Checklist for Hiring a Private Investigator
Looking for an old friend? Want to know if your spouse is cheating? Need to check out a potential tenant or employee?
When Your Fears and Depression Have the Best of You
What do you do when your fears and depression are stronger than
what you can handle? There are times that no matter what you do,
your fears have the best of y...
Weight Loss: A Lapse Is Not a Relapse
One of the mistakes people make in weight loss is turning a lapse into a relapse. This article teaches you how to think clearly and recover quickly when lapses ...
Mortgage Cycling – Brilliant or Risky
Mortgage Cycling could save you thousands of dollars or it could cost you your home. Does mortgage cycling work as advertised? The answer is unequivocally yes -...
Vermont Real Estate – The Independent State
Vermont has always been a state sticking to independent principles. Tucked away in the Northeast, Vermont real estate is a very good deal.
Mission Statements Improve Goal Setting and Decision Making
A Mission Statement consists of a short phrase or a few sentences that form an overview of your core priorities and guiding principles. It describes what you ar...
7 Ways Email Can End Your Business Relationships Before They Start
If you want to establish trust in your internet business dealings, make it your goal to paint a professional image via email.
Cell Phones - The New Media
Every day, there are more new uses for the classic cell phones. These days, people have come to the conclusion that they read their emails, pay their fees or pl...
|
Print this page