Pages

Sunday, August 9, 2009

The Curse of Credit Card Debt

If you're drowning in credit card debt, isn't it time to do something about it?

"It doesn't matter cause I'm packing plastic, and that's what makes my life so… fantastic." So sings rock star Lily Allen in her hit song "The Fear." She goes on to boast "I'm a weapon of mass consumption, and it's not my fault; it's how I'm programmed to function."

So how many of us are just "programmed to function" that way? Is it "have credit card, will travel" for you? And if so, is it beginning to get out of hand?

Total credit card debt in the United States was recorded at $962 billion in July of 2008; figures indicate the average American credit-card user owes some $7,000 to $8,000 on plastic, with many drowning in much higher levels, often in five figures. What's more, it's estimated the average U.S. college graduate completes his or her studies with over $2,000 in credit card debt alone. That's not a good way to start out in life!

Since credit card debt is unsecured, banks usually charge between 10 and a half and 16 percent as an interest rate. Some credit card interest rates are much higher than that, up to 35% or more. Once you add in bank fees, and compound the interest, it all adds up to, well, a lot of money!

The Bible tells us that "the rich rule over the poor, and the borrower is servant to the lender" (Proverbs 22:7, NIV). Those who've been there know it feels like a kind of slavery. As the bills mount and eventually the collection agencies begin to call, you feel like a slave who can't break free.

If you're drowning in credit card debt, isn't it time to do something about it?

How about beginning to live on a budget? And perhaps you should talk with the family about cutting back till you've got that debt under control.

Above all, don't get in to Lily Allen's mindset: packing plastic doesn't make our lives fantastic. Nor does uncontrolled spending, no matter what all the advertising says. Let's live within our means—and avoid the curse of credit card debt!

No comments: