Credit Cards and Debt Elimination
Debt elimination with debt stacking is the answer to credit card debt. Beware of
Easy Credit Card offers. We help you to enjoy life by teaching a very practical way of
handling personal finances.
The State of the Industry Address on Credit Cards and Debt Elimination
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. Debt Elimination is the key to financial
success.
The State of the Consumer Address on Debt Elimination
 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.
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What to look for when choosing a credit card
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.
According to the Federal Trade Commission (website FTC) consumers should shop around and
choose wisely while considering the following:
- ANNUAL PERCENTAGE RATE (APR)
The APR is a measure of the cost of credit, expressed as a yearly interest rate. Check out the "periodic rate,"
too. That's the rate the issuer applies to your outstanding balance to figure the finance charge for each
billing period. For example, if you have an outstanding balance of $2,000, with 18.5% interest and a low
minimum monthly payment, it would take over 11 years to pay off the debt and cost you an additional $1,934 just
for interest, which almost doubles the total cost of your original purchase.
- GRACE PERIOD
This is the time between the date of a purchase and the date interest starts being charged on that purchase. If
your card has a standard grace period you have an opportunity to avoid finance charges by paying your current
balance in full. Some issuers allow a grace period for new purchases even if you do not pay your balance in
full every month. If there is no grace period, the issuer imposes a finance charge from the date you use your
card or from the date each transaction is posted to your account.
- ANNUAL FEES
Many credit card issuers charge an annual fee for granting you credit, typically $15 to $55. Some issuers
charge no annual fee.
- TRANSACTION FEES & OTHER CHARGES
Some issuers charge a fee if you use the card to get a cash advance, if you fail to make a payment on time, or
if you exceed your credit limit. Some may charge a flat fee every month whether you use the card or not.
- CUSTOMER SERVICE
Many issuers have 24-hour toll-free telephone numbers.
- OTHER BENEFITS
Issuers may offer additional benefits, some with a cost, such as: insurance, credit card protection, discounts,
rebates, and special merchandise offers.
There is a way for consumers to get out of debt that they are
not being told about. I know stop spending(Blah Blah Blah)...No really there is a way to save thousands of your
money from going to interest. It is called debt stacking.
Why Debt Elimination?
With all that’s going on around us why be enslaved to the credit card industry when financial prosperity can be
yours? Many people are surprised that after years of debt and in some cases after several bankruptcies there is a
sound and logical way to eliminate all their debt including the mortgage. Gene Jolley, creator of the
Rapid Debt Reducer software, has been
teaching families the art of debt elimination. His seminars are eye opening and free as so many are realizing
freedom from debt followed by financial prosperity can become a reality.
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