The
Truth
About
Debt...
And
How
to Overcome
It
 Are
You an Average American?
Did you know that the average
American household has 13 credit,
debit and store cards? It's no
wonder. Most US households receive
at least one offer of credit a
week. They always sound like the
perfect answer to your problems,
too. Transfer your debt from that
really big-balance card to this
new one, and you won't have to
pay any interest on it for six
months! You'll have that debt
paid off before then, right? And
there's only a little balance
transfer fee.
Of course,
that other one will now have a
zero balance. Doesn't that sound
great? You'll want to use it for
any new purchases, because you
don't want to add to that big
balance you just transferred over
to the new card. And if it turns
out you can't pay it off, well,
by then you'll probably get another
balance-transfer offer from someone
else. It seems like this strategy
could work forever. You might
wonder, "Why doesn't everyone
do it?"
The sad
truth is this: The credit card
industry collected 43 billion
dollars in late-payment, over-limit,
and balance-transfer fees in 2004.
They aren't very consumer-friendly.
They exist to make money from
you.
If this situation is starting
to sound familiar to you, and
you're getting a sick feeling
in the pit of your stomach, you
don't need to feel alone. A Federal
Reserve study showed that 43%
of US families spend more than
they earn. The only way to do
that is to use credit. And it's
pretty obvious that if you use
credit to spend more than you
earn, you are going to be in debt.
When Minimum Turns Into Maximum
Of course, as long as you make
the minimum payment every month
on all your cards, your credit
report will look OK. You will
probably be able to get even more
cards! But is that actually good
news?
Sorry about that. The answer is
No.
Did you
know that if you made the minimum
payment on a $4,800 balance on
a card with a 17% interest rate,
it would take you 39 years and
7 months to pay it off? You'd
pay a total of $15,619, and two-thirds
of that would be interest. You'd
be paying interest on restaurant
meals you ate decades ago, clothes
you've donated to Goodwill, and
electronics from the stone age!
 It's
Not Always Your Fault
A 2004 research study showed that
most credit card debt incurred
by older Americans was due to
the high cost of healthcare and
prescription medications. In the
same vein, anyone with a costly
medical condition or emergency
can find themselves deep in debt.
Health insurance has caps on spending,
and even if the caps aren't reached,
a 20% co-pay is common in many
policies. There are deductibles
and supplies and drugs that aren't
covered. A serious illness can
be devastating to the average
family's finances.
Another
debt problem beginning to hit
Americans this year is that the
rates on their A.R.M.s (adjustable
rate mortgages) are beginning
to reset. With the federal reserve
interest rates climbing, many
people's mortgage payments have
increased by 25%. If your mortgage
payment is $1200, that would mean
it would readjust to $1500.
So What's a Debtor to Do?
 Some
people take equity loans on their
homes to pay off credit card debt.
Of course, that means you have
to pay back the equity loan-usually
by increasing your mortgage payment-and
if you sell your house, you'll
make less profit because the equity
loan will have to be satisfied.
And one other thing-the interest
on equity loans is higher than
it is on a regular mortgage.
Others
turn to one of the many credit
counseling agencies advertised
on TV and all over the Internet,
only to find that many are simply
not ethical. With mandatory counseling
laws put in place for people considering
bankruptcy, the industry is overwhelmed.
On top of that, IRS investigations
into 41 "non-profit"
credit counseling agencies in
May of 2006 revealed that they
were not acting in the interest
of the consumer and were motivated
by the money they could make.
They lost their tax-exempt status,
and investigations into other
agencies are continuing.
Bankruptcy
used to be a last-ditch resort
for people stuck in a bottomless
pit of debt. Most bankruptcies
are not the result of overspending,
but occur because of huge medical
bills, job loss, or divorce. In
2005, Congress passed laws that
made it much more difficult to
declare bankruptcy. Credit counseling
is mandatory but difficult to
get. Bankruptcy attorneys' fees
have increased; filing fees have
increased. More money than before
must be paid back to creditors.
Is There
a Reasonable Solution?
Yes, and
it's quite simple:
To get
out of debt, you need to make
more money.
 You
need a second source of income
that you can generate when and
where you want to. A job that
will fit in with your family obligations
and won't interfere with the things
you love to do. If you're determined
to change your financial circumstances,
a home-based business could very
well be your way out of debt.
After you've got the debt monkey
off your back, you will probably
find that running your own business
is so easy and so financially
satisfying, you'll want to keep
at it, running your personal wealth
steadily higher. You might decide
to quit your "day job."
Other people just like you are
making everywhere from modest
incomes to fortunes, and the only
equipment they need is a computer
and a telephone.
It's
an idea whose time is definitely
now. If you're ready to say
goodbye to the worries of escalating
debt-ready to take charge of your
life in a way you never dreamed
was possible-just fill out the
form below to receive free information.
Sincerely,
Teri & Dave Jackson
515-227-5528
Email
|
PLEASE
CONFIRM YOUR EMAIL!
You must confirm your email address
before I will be able to get in touch
with you. Please check your email after
you submit the form, and click on the
"confirm my email address"
link.
|
|
I Respect Your Privacy.
I will never sell, barter, or rent your
information or email addresses to any
unauthorized third party. Period! The
information is Free. You are under no
obligation and you can Opt-Out at any
time.
|
|
