Wireless Credit Card Machines

Defeating Credit Card Debt With Self Control
By Roy Thomsitt

Credit card debt is a major social problem in some Western
countries. To rid yourself of credit card debt, it is best to
recognize the problem as both a social and individual problem.

If you are overburdened with credit card debt, or are in danger
of becoming so, it is very easy to see it purely as an
individual problem, one from which you may be suffering both
physically and mentally. Worry and stress can be silent
marauders into your physical and mental well being. Debt can
undoubtedly cause both worry and stress, not just to the
debtor, but their immediate families too.

Why Should You Care About The Social Causes of Credit Card
Debt?

If you wish to overcome your credit card debt problem, you will
benefit from removing some of the social influences. They are a
major influence on the way you react, think and behave. Remove
the social influences, and you take a big stride in your
journey to eliminate your debt.

I do not, of course, mean remove the root causes of credit card
debt. You cannot do that. What I am referring to is to prevent
the social influences from penetrating you and taking over your
life. As an individual, you have the right to resist social
influences where they are harmful. The liberal, unfettered use
of credit cards is an influence you will benefit from
resisting.

Just by being fully aware of the social influences, you have
made an important step. You will more likely be on your guard,
and by asserting your individuality, you are more likely to
overcome or prevent the credit card debt problem.

What Are The Social Causes Of Credit Card Debt?

You could spend years analyzing the credit card debt problem.
Here are just a few of the influences at work in the society
around you:

1. Credit card interest rates are high, therefore the profits
can be high. Banks and other credit card issuers are after
their slice of that big money, including from you. They can
therefore justify big marketing budgets to get your money. I
deliberately do not say “get your business”. You will resist
better if you think “they are after my money.”

2. It is very easy to get credit cards, multiple credit cards
in fact. Issuers of credit cards make it easy for you, if you
have had no debt problems in the past. If they seem to take it
lightly, it is understandable that their customers do too. But
remember, they take the risk factors into account when setting
interest rates. That’s why they are so high.

3. Your friends, neighbours and work colleagues will probably
all have multiple credit cards, talk about them and flash them
around from time to time. That can all influence your own
attitude to credit card debt. 4. Depending on what country you
are in, yours may be a “have now, pay later” society. Immediate
gratification can take precedence over common sense. If everyone
else is doing it, it surely must be right? Wrong. Especially if
the interest rates are too high.

5. You see other people buy new furniture, go on exotic
vacations, or go out to expensive restaurants all the time.
Even if you never know if they are doing so on credit card, you
may want the same. But you do not have the immediate cash, so
what do you do? Jump on the credit card train? That is what
your society may be pushing you towards.

How To Resist the Social Pressures To Succumb To Credit Card
Debt

Due to the overwhelming pressures of the credit card society,
it can be quite a difficult task, initially, to change your own
attitudes. But by asserting your individuality, you can steadily
eliminate the social conditioning. It is really a matter of how
you think in certain situations. You are in charge of the way
you think, so all you need to do is what is natural. Not what
everyone else seems to be doing around you, but what is natural
to you as an individual. Think to protect yourself, assert
yourself, and to look after your financial well being.

Here are a few ideas to help you:

1. Whatever type of loan you may apply for, you are after just
one product, money. Different types of loans are marketed as
separate products, in different packages, but to you, they
should all be one: money. The money, once you have it, is all
the same quality. A dollar is a dollar, a pound is a pound, a
euro is a euro. Having engrained that upon yourself, knowing
you are just after this single product, you need only look at
price. Credit card debt is very, very expensive. The interest
takes money from you, and reduces your assets. If you need a
loan, you want the lowest possible interest rate, one that does
not unnecessarily leech your assets.

2. A credit card should only be used as a convenience to pay if
you have no cash on you, knowing that you can pay off the
balance before interest charges kick in. Many cards have an
interest free period. Never use credit cards as a loan beyond
that free period. Others do, but you have no need to. You can
eliminate that idea altogether. You are creating a new habit
that will enhance your financial situation, and resisting an
old common habit that would ultimately damage your finances.

3. Plan all your borrowing. Sit down and write down what you
absolutely must buy over the next year, and add what you would
like to buy. Total the cost. Write down a budget for each
month, making sure you have listed all your regular expenses
that are fixed and unavoidable, and those over which there is
some flexibility. Compare that total with your income. If you
have a surplus, then you can think about those extra purchases
you had in mind. If not, don’t think any more about them. You
cannot afford them, and cannot afford to borrow.

If you have a planned surplus, then maybe you can get those
things you wanted. If you can afford all of them, and there are
quite a few items on your list, then forget about getting a
loan. Be patient, resist the have now pay later syndrome. You
can save interest and buy a bonus item with that later if you
really must. You are in a great position to pay cash.
Prioritize the things you want to buy, and note their cost, and
then work out a plan by which you buy one item at a time spread
throughout the year. Why pay the banks credit, when you can pay
cash? You will save not just the interest but maybe get cash
discounts. Cash gives you control. With credit you are
subservient.

If, on the other hand, there are just one or two more expensive
items you want to buy, it is time to compare options and test
your resolve. If you save your surplus each month, consider how
long it will take to have enough for item 1 and maybe item 2.
Are they really urgent? Probably not. Maybe you can save for
one after 4 months and 2 after 9 months. That way you are
getting into the habit of saving, and living off cash. Cash is
king. Your finances will start to look good over time, and
you’ll start to feel proud of yourself. You will feel in
control.

Remember too that by saving, if an emergency comes up, you may
have the cash at hand instead of reaching for that expensive
credit card.

You really cannot wait and save? That is a pity, but now check
out all the loan sources suitable for your intended purchases.
Get the best plan, the best interest rates, and apply, with the
intention of using that loan just for what it is intended, and
to pay it off within the time scale of the spending plan. In
the example one year. Stick to that discipline, and your credit
is still under your control. And, you have avoided reliance on
expensive credit cards.

4. Remind yourself every day that you are only going to use
your credit card when you have no cash on you, as a
convenience, and you will repay it before interest starts to
accrue.

5. Also remind yourself every day that sometimes it is good, or
even necessary, to be that bit different, and to resist social
pressures. Imagine all the credit card lemmings heading towards
the precipice, while you relax in your counting house, counting
out your money. Real money; your assets. Anyway, it’s great
sometimes to be different, it really does make you feel good
about yourself.

6. Never, ever feel you have to buy something just because a
neighbour or friend has been boasting about theirs. Envy and
jealousy are viruses that minimize your individuality, and can,
in this case, damage your finances.

Resisting the pressures of the credit card society will be a
lot easier once you have set your mind to it, and started to
feel the benefits. Enjoy the process, and you will be a cash
convert for the rest of your affluent life.

About the Author: Roy Thomsitt is the owner and part author of
http://www.eliminate-credit-card-debt-now.com

Source: http://www.isnare.com