We have all heard countless horror stories about being stuck in credit card debt and the severe negative effects it can have on someone’s life. Debt is pretty much the evil twin brother of wealth; because people who are in debt are not wealthy and vice versa. Right now we are at a time financially that is very trying for us Americans. We are officially in a recession and can very easily end up in an all out depression. Needless to say people need more money to stay afloat and having credit card debt will keep you from having that money and like the title says can potentially ruin your life.
One of the biggest eye openers to this problem is watching the movie “Maxed Out” this documentary goes in depth just how bad of an effect debt can have on peoples lives. One of the most gut wrenching scenes in the documentary is when two parents were interviewed who both had children in college commit suicide because of credit card debt. People have lost so much because of what debt can do, one of the leading causes of divorce in this country is due to financial problems and one of people’s main financial problems is do to their debt situations.
The credit card companies themselves have devised a brilliant scheme to make the most amount of money off of people as possible. They do this through the minimum payment. Minimum payments will stretch out the time you are paying off your debts to over thirty years and you will lose at least four times the original balance to interest alone. The way they pull this off is when people start running large balances, then like a sucker punch the interest rate gets raised up putting people in a very compromising position. At this point most people could barely even afford the minimum payment let alone anymore and to make matters worse the vast majority of the payment is going directly to interest. So essentially you would be just as good off if you just flushed your money down the toiled bowl.
Many people have found that the best method of credit card debt relief is that of debt settlement. This is the fastest way to get out of the creditors money sucking web. Plus the savings off of a debt settlement are tremendous.