Your Cards And Your Credit

With great freedom and power, there also comes great responsibility. If everyone could just remember this adage when it comes to applying for new credit cards, perhaps there would be no need for credit rating scores and debt consolidation agencies. The reality, however, is that millions of Americans are addicted to the ease of using credit cards and the freedom it provides to acquire things (“take now, pay later”), and give little thought to the fact they are actually spending money what they don’t have. And what’s worse, unless payments to their creditors can be made in a timely fashion, they will have to pay an accumulated interest and spend more money than they initially planned! Ultimately, the habitual comfort of “charging it” becomes a battle at debt reduction and a manic attempt to save credit scores.

The first thing to acknowledge if you are in the black hole of debt is that nothing is a quick fix. Climbing out and restoring your credit will be a long term process, and takes patience and diligence. Think of it this way: a dieter shuns chocolate because she knows “A moment on the lips, a lifetime on the hips.” Likewise, a person who is in debt should think the same thought in terms of credit card bills and interest rates the next time there is an impulse to sign up for new credit cards. That said, the resolve to accomplish debt reduction starts with the practice of self-discipline. Opening up credit so that you can buy a fancy new TV is a quick indulgence, and one that you will be paying for, for a long time to come. Remember, there is a day of reckoning on the horizon every time a cashier swipes that plastic.

If you find that you’re the type of person who finds that retail therapy is too much of a siren call, then it’s time to cut the cords. Cut up you cards. You can’t use what you don’t have. With no plastic to your name, you won’t have any choice but to re-focus and shift your attention from the local mall to the pile of payment stubs in your Inbox. Remember, the key to climbing out of debt is to spend every free penny you have toward paying off your bills, not digging yourself deeper into the hole. This micro payment system will pay off in the long run.

Perhaps the biggest secret to managing your cards and your credit, especially when things look bleak, is to never lose hope. Remember that a journey of a million miles begins with one step.