The Credit Card Trap
Understanding How You Got Here
Before we can discuss a solution to your credit card problems you have to first recognize that there is a problem and that it is not entirely your fault. A great deal of the debt you have acquired is a result of the very sophisticated marketing programs designed by banks and stores to entice you to use your credit cards.
Those “teaser interest rates” draw us in. We have all seen them... like the infamous 0% for six months! ... but unless you read the fine print (and maybe even if you do), you don't fully understand the ramifications later down the road.
What's more, pre-approval notices start flying in from other credit card companies with offers that are just too good to refuse. At this time, you probably have a decent credit score and are a timely payer...at least for the first few months, maybe longer. If you’re like most people you go ahead and take advantage of these offers, stretch your credit limits, and obtain multiple cards. Why not!
That’s how it starts. Then you throw in a new car with a special low or no money down deal and new furniture under a similar financing structure and the next thing you know you are rapidly approaching the crisis point where you can only make minimum monthly payments.
...at this point, you are now officially in the credit card trap.
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