The Jail Cell Of Credit Card Debt – There is what experts call a “problem-solving process.” It is a systematic method of problem solving that is always used to go from the starting point where the problem is to the end point where the problem is solved. There are six basic steps to the troubleshooting process and none of them can be skipped. Are…
- Recognize the problem
- Determine the problem
- Propose a solution
- Identify risks and costs
- Choose the best solution
- Implement the solution.
This process always works because there is no room for emotion, reason, or delay. You move from the first phase to the last phase quickly and the problem is solved.
Many times when it comes to credit card debt, people don’t like to acknowledge the problem. In a 12-step program like Alcoholics Anonymous, the first step is always to recognize that you have a problem. And this is very often the biggest obstacle for someone who sees their credit card debt start to take over their life.
Credit card companies don’t help. They don’t prefer to do everything they can to get you out of debt. It’s not always that they’re evil, but that’s how they make a living. The interest money you pay on your credit card debt is used to pay for the home, food, college education, and luxury cars of many credit card company executives. That should only make you want to take this big scam called credit card debt offline.
Let’s call a spad a spad. Credit card debt is a loan you don’t need to complete more paperwork than just to get a card. Once you have one, credit card companies are very happy to increase your credit limit as far as you can buy more and more, while your interest rates also increase. In a short time the level of debt is huge and you send them hundreds of dollars and most of those payments are interest.
Interest is money that buys nothing. This is the money a credit card company gets to do nothing but house your debt. If we can get a perspective on credit card debt, we will see that there is no rational explanation as to why one credit card may charge 5% interest and another charge 25% interest. Credit card companies do not owe an explanation of what the money is.
It’s not like when you buy a piece of bread that can cost a dollar for one type of bread, but three dollars for another type of bread. In such cases, you can easily see that higher-priced bread has a higher quality, tastes better, or is more nutritious than cheap bread. You really get more for your money.
When credit card companies charge you a higher interest rate, there is no increase in the value of what they give you. They don’t give you anything. If a credit card company raises its interest rate from 10% to 20%, it doesn’t get twice as much good service or any kind of product for the extra money taken from its product.
So how did they get away with it? They do so because they can get away with it and there is no indication that any government agency will make them resign. Get away with it because we don’t get angry and knock them down when they cheat on us like that. And they get away with it because credit card debt is a prison cell and we can’t get out.
The purpose of this discussion is to get us into one of the problem-solving processes. This is to make us aware that we are having and to make you good and angry. If you are angry because you have a problem, then you can move on to step two and there and four and find a solution and then do whatever it takes to make that solution happen. And when you do that, you’re on your way to opening the door to a credit card debt prison cell and getting away from a free man or woman, hopefully never entering that prison again.