The average American carries about $5,000 in credit card debt. Does that sound familiar?
With a typical interest rate of
16 percent, it would take 12 years to pay that off,
assuming the cardholder makes only the minimum payment
and doesn't charge any new purchases. Worse, that person
would pay an extra $2,500 in interest payments for a
total bill of $7,500.
Think of what you could do with that
much money. A fabulous vacation perhaps? A used car
for your son in college? If you socked it away in
your retirement account, you'd have an extra $24,000
in 20 years. That's a lot of greens fees.
Simply put, that money that could go toward so many bigger and better things. "You wouldn't set fire to a stack of $100 bills would you?" asks personal finance expert Jane Bryant Quinn. "Paying interest on your credit cards isn't much different."
That credit monkey on your back can affect
every aspect of your financial picture from how much
money you have in your wallet to whether you get the
next job you apply for. That's why taking control
of your credit cards -- and keeping debt at bay --
is the No. 1 ingredient for financial success. "Taming
credit card debt is the first thing I do with all
my clients," says Bill Driscoll, a financial
planner in Boston who specializes in debt management.
"Virtually everyone can learn to use credit cards
better."
With the strategies outlined in the "Take
Action" section of this site, you can take
control starting today, no matter how deeply in debt
you may be. And even if you're the type to pay off
your balance every month you'll learn to make your
good credit standing work even harder for you.
To make any headway, however, you've got to first understand why using credit cards wisely is so important.
Check out "4
reasons to kick the credit card debt habit."
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Do you have a secret to success with credit cards?
Or, are you struggling? . |
-- Posted: Feb. 20, 2007 |
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