Credit Card Debt and interest rates are not the only problem. I read a report the other day that got me contemplating how it is not solely interest rates that we want to be worrying about when it comes to Debt Management and having to pay of our Credit Card Debt.
Recently the Northern Money Conference happened in Liverpool. One of its attendees was Mark Lyonette who is the chief executive for the Association of British Credit Unions Limited.
He raised worries over the fact there looks to be a great deal too much focus on spending and not a sufficient amount on saving.
He also brought up the disquieting detail that we could be on our umpteenth card and merely paying the minimum payments, hurriedly leading towards a terribly nasty climax.
What this means is that we are consistently being lured into obtaining new credit cards instead of dealing with the ones we already have. Without doubt it would seem awfully inviting to obtain a new card with zilch on it other than our signature, but the plan of saving for a purchase looks to have gone totally out of the window.
If we’ve got various credit cards that we’ve maxed out surely it will be better to try Debt Consolidation than continue to pay excessive rates and minimum monthly payments that we merely bury our head in the sand about?
The thing about ignoring things is that the can unavoidably come and bite us on the proverbial becoming an even bigger issue than the one we was trying to run away from.
The figures confirm that the standard amount of debt we are in per person in the UK is £30,306. This was calculated by Credit Action and shows that’s 129 per cent of our typical yearly wages.
So that means that on a regular basis we spend more than we earn. This is far from satisfactory. We should get into a good practice of Debt Management and stop fooling ourselves that this is all going to disappear.
The next stunning thing is how some are being declared insolvent or bankrupt; its one every three minutes.
Now this tells me that people have continued to pay no attention to things and have for that reason found themselves in an complete fix. They come down to earth with a good severe bang, have a nervous breakdown then get bailed out.
It doesn’t make sense does it really? The complete system is geared up to make it way too easy to get into problems to then have to bail us out of it. This wastes the taxpayer’s money that could be put to better use. Would not it be better for techniques to be put in place that encouraged us to take responsibility for ourselves and not require desperate measures?
What might we do? Just a straightforward thing as not spending what we haven’t got can transform everything. Then we could move onto dealing with that debt. If we really do have very much debt than we could handle there are methods just like Debt Consolidation which may alleviate some of the burden without removing the responsibility of having to pay it back.
Added ways we may help ourselves is by saving money. We can accomplish this by not overstretching ourselves in the first place. We therefore have added disposable income and probably added money we may put away.
The peace of mind that comes with being levelheaded means we may do what we’re meant to – enjoy our life!
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