subject: How Did You Accumulate Debt? [print this page] The accumulation of debt often starts simply enough. You get a new credit card and you treat yourself to a few well deserved items that you intend on paying off in full when the statement arrives. And you may actually do it for a month or two, but then you decide you could use a few more things and it was easy enough to handle it in the past. But it isn't long until you see the balance on the account increasing each month. At this point you may have a closet full of clothes and house full of nice items, but you also have credit card debt.
You may eventually go on to open other credit card accounts and transferred balances. And by this time you are robbing Peter to pay Paul to try to keep your head above water. And the truth is the longer you keep this up the longer and more difficult it will be to emerge from this situation. But more importantly, you are going to have to deal with your spending habits.
It will be difficult, but you will have to stop using your credit cards. There is nothing to be gained by you incurring more consumer debt. There is a lot of great information available on paying off your debt and building wealth for the future. Suze Orman and Dave Ramsey both have great workbooks for accomplishing debt freedom and goal setting for financial independence.
However, not everyone is able to follow a plan without some structure. If you feel you need this added structure, you may want to consider using a nonprofit credit counseling organization. These people are in the business of helping people get out of debt. They consolidate your consumer debt into one account requiring only one payment each month. Your interest rates are reduced to less than 10% in most cases and your fees are eliminated. This allows you to be out of debt in three to five years with little impact to your credit score.
by: Marjorie Salada
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