The State of the Industry Address

Credit card debt is like that proverbial snowball that keeps getting bigger and bigger and card issuers couldn’t be happier. The credit card industry wants to see credit cards charged to the limit (or over the limit so the higher rates can take effect), minimum payments made so that the card virtually never gets paid off, and the use of convenience checks/cash advances so that they can charge interest immediately to your account. And if your past credit history has been, well, not so good—they will still give you a card with an annual fee, high interest, and all sorts of other fees that they just give creative names to. Let’s call a spade a spade and see the credit card industry for what they really are—money hungry.

The State of the Consumer Address

The table below is a marker of desperation as more and more consumers are opting to use home equity as a means to get out from under the weight of credit card debt. “A survey by the Consumer Bankers Association found that, whereas in 1991 home improvement was the primary reason for taking out a home equity loan, debt consolidation is now the primary reason, with 40 percent of borrowers using a home equity loan for this purpose in 1997. This shift also is evidenced by another recent survey by Brittain Associates, Inc., which estimated that during a 24-month period ending June 1998, 4.2 million households converted $26 billion in credit card debt to home equity mortgage debt.” See High Loan-to-Value Lending: A New Frontier in Home Equity Lending

According to the Federal Reserve Statistical Release the figures for May 2004 in revolving and non-revolving consumer debt shows 2031.2 in billions of dollars. Consumer debt is out of control as Americans are constantly being enticed to spend money above and beyond the means to pay it back. This trend (charge now and pay later) has a direct correlation to the record number of bankruptcies being filed today. Too many times unforeseen events such as downsizing or personal illness and accidents leave families devastated in the wake of large credit card debts. To exasperate the growing problem of credit card debt you might want to throw in the added concern over identity theft.

Budgeting
Many fear the word budget as though it is some terrible monster lurking in the shadows waiting to pounce every time the paycheck comes in. But this fear is unwarranted, since if anything, a budget can be a valuable asset to the family.

Credit Cards
Credit card debt is like that proverbial snowball that keeps getting bigger and bigger and card issuers couldn’t be happier.

Credit_Counseling
Many people face difficulties when it comes to the proper handling of credit. The system of credit by ethical standards should be administered by creditors and used by consumers with caution and self control. Unfortunately, both creditor and consumer fail when it comes to handling credit and the result is waves of debt crashing on the shores of bankruptcy.

Debt Consolidation
To do or not to do?That is the question and the answer depends on the person doing the asking. Ironically, many have gone the route of debt consolidation only to find themselves in twice as much debt. How does this happen?

Debt
Debt is a lot like gravity—it’s always weighing you down. Can you imagine being free to soar in the heights of financial prosperity? It does happen and it can happen to you but there are vital steps you must take before debt can truly be eliminated.

Bad Debt
Bad debts are debt like credit cards, car loans, etc., and normally include incurred debt on anything that depreciates.

Bankruptcy
Bankruptcy law was enacted to protect American citizens who, for reasons usually beyond their control, had found themselves hopelessly in debt.

How does debt-stacking work?
Debt-Stacking is a simple method of reducing debt in the shortest time possible with the money that is already going to payments. This method has saved the average consumer over 50,000 dollars in interest and cuts the time to payback debt in half.

Why credit cards take so long to pay off?
Creditors design your payment schedule to keep you in debt for a very long time. Lets look at a typical credit card with a 3400.00 balance at 16.9% interest.

Financial Freedom
In today's world building financial freedom is essential for a peaceful life. Steps to financial freedom involves:

Frugal Living
Frugal living doesn't necessarily mean giving up all your comfort and hobbies in order to save.

Americans Should Focus on Debt
“ On one hand they’re investing money each month in stocks, 401(k)s and other vehicles. But on the other hand, they’re shelling out hefty minimum monthly payments to credit card companies, which barely cover the 10, 15 or 25% interest they’re being charged.”

Personal Financial Planning
The journey of a thousand miles begins with a single step.

Can You Afford to Buy On Credit?
The promise of a better lifestyle with 'instant credit' is suffocating consumers on an ever-increasing iceberg of debt.

View our other website about debt

Copyright © Gene Jolley


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