For millions and millions of Americans, debt is a major problem. Many people get into serious financial trouble because they use their credit cards too much, and the result is a pile of money owed to creditors who are charging astronomical interest rates. Sometimes these credit card interest rates can reach as high as almost 30%. If you’re trying to get out from under your debt, and you’re paying credit card interest rates on that order, you’re going to need help getting your act together.
Of course, not all people get into debt because they couldn’t handle the temptation of their credit cards. Many people get into serious debt because they became ill or injured and required major medical treatment. This is true of people who got sick or injured and didn’t have health insurance; but also just as often for people who did have health insurance – only to discover that their policy was filled with all kinds of loopholes and fine print, and not all of their medical bills were covered. As everyone knows, medical bills are shockingly expensive, and hardly anyone can afford to pay for all of them out of pocket. When this happens, and you start to default on all your bills, the result is a spiraling nightmare of late fees, penalties, increased interest rates, devastating credit reports, and overall financial collapse. What’s worse, the damage that is done to a person’s bank account and credit report is nothing compared to the damage done to a person’s soul and peace of mind. Those are often the first and hardest-hit “victims” of major debt and all its associated stress and problems.
Many people get overwhelmed by their debts and just simply seek to run away from them. This approach is not going to solve anything, and anyone in bad financial straights can either stop the slide and step by step work their way out of debt, or they can continue to run – and as everyone knows, you can run but you can’t hide. Facing your debts is wise and proactive. When you think about it, the only way to get rid of a problem is to solve it. Hoping that it all goes away without doing anything is not a plan.
Nice article about debt. The credit card industry is in the trillions where otherwise the morgage industry is “only” in the billions.
THis is all well and good, but HOW? I am in the hole each month by 850 dollars. There is no second job that I can get. I’ve talked to my creditors and they say they have gone as low as they can on the interest rates and payments and I am still in the hole. I would walk away from my upsidedown house, but I live in a state where that will still not release me from the obligation to have to pay a mortgage I can no longer afford because of a terrible medical situation. I don’t have family and friends I can borrow from. I need real steps to help make the debt go away.