There are few things in the financial world that are as polarizing as credit cards. It seems everyone has an opinion. Some people love them, some people need them, and to some people “credit card” sounds a bit like a curse word. Credit cards have the incredible ability to facilitate poor decisions, yet a limited few individuals seem to flex their power to leverage cc spending. Credit card companies do their best to market the idea of responsible credit card use (quite similar to alcohol beverage distributers). And they are really good at their craft. Over the last fifty years, they have taken an outcast concept and integrated it into our society. While the notion on using a credit card can be justified, carrying a balance on a card is difficult to justify for anyone that can do third grade math.
Credit card debt is a unique proposition. Companies will lend you money in a very convenient way then charge you tons of interest if you do not pay them back. It seems simple but so many people fall into the trap of credit card debt. Credit card debt has almost nothing to do with income. You will not earn your way out of it. If you have credit card debt it is a clear sign that you are disorganized. It means that you have been living above your means or so close to the edge you needed help. Chances are good that you had an “Emergancy” and Visa picked up the slack. The ironic part is that credit card debt is a middle income problem. People with money don’t need credit cards and truly impoverished are unable to qualify. You don’t accidentally get out of credit card debt. It must become a priority. Credit cards are not for emergencies, they are emergencies when you can’t pay them off. Continue reading If You Carry A Credit Card Balance Your House Is On Fire