Border Lines

First and foremost, this is a question each and everyone must ask themselves. Can I dig myself out of debt or will it bury me alive. The answer is a resounding YES. I repeat the answer is YES, you can get out of debt. Just get help and be honest about your situation.

Everyone knows how easy it can be to overspend and get into some serious debt. Common sense tells us not to get in over our heads - but common sense is all too often not behind the decisions people make, especially about credit cards. Americans are used to instant gratification and being encouraged to shop. There’s nothing wrong with shopping as such, but credit card debt can quickly get out of hand as many Americans know all too well.

Credit cards are both a blessing and a curse for consumers - here are some important facts:

Fact # 1: On average, a cardholder will have three bank cards and four gas or store credit cards for a staggering total of seven credit cards! This statistic courtesy of www.cardweb.com.

Fact # 2: 60% of U.S. households account for as much as 560 billion dollars in credit card debt. This breaks down to an average of $11,000 per household. (Testimony by Robert Manning to the U.S. Senate Judiciary Committee)

Fact # 3: Have you ever asked yourself why minimum payments are low? The answer is obvious. By asking consumers to make small minimum payments, they encourage the consumer to carry more debt. The lower the minimum payment, the larger the debt someone will owe. Who wins in the end?

Just some things to think about. Now how many credit cards do you think you need? We’d like to make it illegal to carry more than two cards, but realize we’d be run out of town on a rail were we to do so. Credit card spending is just too ingrained in our society.

Of course, no one can tell you how many credit cards you can or should have. Your financial planner or banker may scowl, but they can’t make you give them up.

So let’s compromise. If you have more than two to, say, five - why not leave three in a locked drawer and use only two if you really need to. Let’s compromise further: when you receive your statements, how about making more than the minimum payment? Your aim should be to drastically reduce your debt.

Christmas will be here before you known it. You will no doubt be overspending and using your credit cards. At this time of year, everyone does. How about this though - after the holidays (we realize it may be impossible to keep from overusing credit during this season) you make a New Year’s resolution: promise yourself that you won’t use your credit card more than once per month? This is a bit like going on a strict diet, but you can and must do this if you want to get a handle on credit card debt.

It is high time that we as a people examine the way that they use credit cards and decide to be honest with ourselves.

One of the greatest things you could have is freedom from debt. Just think about the figures we’ve given you in this article and we think you’ll agree with us. Make getting out of debt your top priority for 2008.

While we would advise having no more than two credit cards, we know that this is simply not going to happen for many. If you can control your spending and keep a grip on your payments, then you can have as many cards as you would like. However, try not to take your cards shopping with you - if you can’t just pull out that card and buy anything anytime, you’ll be keeping yourself out of a lot of trouble. You probably don’t need it that bad anyway.

Wait until you can pay cash for those things that you want rather than need. Patience, after all, is a virtue.