Why A Credit Card Bailout Won’t Save You
There are all kinds of laws and movements afoot these days to end the abusive and predatory practices of credit card companies.
Some of the things that proposed new laws might accomplish are: putting a limit on exorbitant fees and fines imposed by credit card companies; lowering the high percentage rates that some credit card companies charge; and limit the amount of credit offered to those under the age of 21.
These laws may be a good step but if you are deep in credit card debt, these won’t solve your problems – because, as harsh as it sounds – YOU are likely part of the problem.
Look over your credit card bills and be honest with yourself – are there restaurant meals on there? Expensive clothing? Vacations? A new ipod? A new television set, DVR, car stereo system, exercise equipment, salon visits, running shoes, gym membership?
Those are not necessities of life. If you can’t pay for them with your regular pay check, you should not be putting them on credit – unless you truly are going to pay off your credit card bill in full every single month. Which most borrowers do not manage to do.
So if you want to save yourself from a credit card mess, do not look towards new laws to save you – you’re going to have to change your spending habits and learn to differentiate between luxuries and necessities.