Richard Green - Make Money Get Out Of Debt And Repair Your Credit

Make Money Get Out Of Debt And Repair Your Credit

Simple And Easy To Follow Rules To Master Your Finances

By: Richard Green.

Disclaimer

This publication is intended to provide helpful and informative material. No action should be taken solely on the contents of this book.

The author and publisher specifically disclaim all responsibility for any liability, loss or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, from the use or application of any contents of this book.

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Always read all information provided by the manufacturers product labels before using their products. The author and publisher are not responsible for claims made by manufacturers.

Manufactured in the United States of America, 2013

This book is dedicated to Natalia whose input was well timed. She was helpful in getting this book put together.

Millions of people have found themselves deep in debt. Many people wonder why so many consumers end up owing more money than they can afford to pay. Here are the most common reasons why being in debt is a problem for most people.

Credit Card Companies Target People at Age 18

Once individuals turn 18, they are deemed to be legal adults. Credit card companies flock to teens because they know that they want to buy things. Most 18 year olds do not have full time jobs but they want to buy things that their parents may not want to buy them.

Credit cards are small pieces of plastic but they give people a feeling of exhilaration. The possibilities are endless when a credit card company gives you a credit line and a shiny card. Then, all you have to do is pay a small monthly minimum monthly payment.

What young people do not fully understand is that each purchase is assessed an interest fee. A laptop may cost $400 but at 15% interest the cost is actually $460.00. There is also a finance charge; which means that in the end that people will incur a lot of debt solely on credit card purchases alone.

Once teens hit 18, they become reckless and they feel as though they can manage their own finances without help from their parents. This can lead people especially those who are away at college to rack up excessive amounts of debt. There are food costs, books, entertainment, clothing and other expenses to cover and every dollar adds up over time.

This can be a double whammy for college graduates. They incur credit card and student loan debt at the same time. When they exit college, they have to pay very high monthly payments on their debt which often leads to them being in a default status.

The Job Market Is Weak

The job market has been weak for several years. This has made it difficult for college graduates and those individuals who are 25 and under to find well-paying jobs. When wages are not competitive, this can lead to individuals being forced to live off of their credit cards to make ends meet.

Credit cards can become a crutch for people and they will keep taking out lines of credit to live and buy items that they might not necessarily need. In most instances, people who have thousands of dollars in credit card debt will never repay all of their balances before they hit retirement age.

Consumers Love Spending Money

It is hard to keep up with the Joneses in a time where wages are not increasing that much each year. Marketing executives have formulated ways to make consumers believe that they need the latest gadget, purse, shoe, or vehicle.

Millions of people spend more than they earn and they rely on credit to pay for the extras that they desire. People do not want to go without that status item so they would rather get into debt than feel left out.

Being in Debt Has Become Too Common

Most people are deep in debt and that has created a culture where people do not feel ashamed about it. When people view debt as just an everyday annoyance, they often allow late payments and defaults to occur.

There are many commercials on TV each day that picture a debt ridden person who just has to file for bankruptcy or go to credit counseling to wipe their slate clean. Some people view bankruptcy as a way out even though it remains a huge blemish on a credit report for 10 years.

Financial Responsibility Has Become Less of a Focus

Many young people today are not taught to be financially responsible. They are told to pay their rent, car payment and utility bills but parents do not educate kids on the dangers of debt.

The number of people who have large debt loads increases each year. This is because a new generation of people has joined the industrial revolution. People do not even have to leave home any more to make purchases. E-commerce has allowed people both young and old to buy items online at the click of a mouse.

When people can buy whatever they want they tend to get into debt to pay for their spending habits. Life is often dull for many people and they often find comfort in buying new items because there is a rush.

It can be exciting to order an item and wait for it to come in a box and then open it once it has arrived. People need to view their spending behaviors in a different way so that their needs are taken care of before their wants.

People purchase too many items and they are often not needed and end up collecting dust. This is a waste of time and money. For more consumers to be free of debt there needs to be more emphasis placed on taking on debt as a last resort. Many people see it as a safety net which ends up leading them to become financially strained over time.

In todays society, it is more common to see people paying with credit cards than with paper money. With the ability to pay on something, whether it is a night out with the family or buying an expensive item, credit cards make it easier to budget out the household expenditures. Many credit card holders make minimum payments on their credit cards per month to eventually pay them off. What he or she may not realize is by paying the minimum; they are missing some of the biggest opportunities that credit cards make available for the holder.

One of the best things about credit cards is that they can actually improve your credit score. Many people are aware that a certain credit score has to be reached to get a credit card. Credit cards prove to lenders that the credit card holder is responsible and pays off their bills. It also shows a steady income. Paying off the credit card sooner shows that the holder is capable of handling more debt. Credit scores are typically linked to a persons credit limit. The higher the limit the better the credit score achieved.

Banks look at credit scores of people to decide whether or not to give the person a loan. Paying off the credit card early can help the card holder get a loan easier than the person that has not. People that have credit cards also get loans more frequently since they have been already approved by a bank to get the credit card to begin with. Paying off the credit card early might enable the card holder to be able to purchase a home or the new car that they have been wanting.