How Do They Handle Their Credit Card Debt

Category: Finance, Credit.

Here is an example of the system gone wrong: a mortgage loan that encourages paying off one debt, in order to over extend yourself with another debt.

As a borrowing nation, I believe we ve reached new depths. This is what happens with the interest only loan and credit card debt. It would seem that in this century we ve managed to take every form of credit possible, extend it to the limit for some of the public, and then look at them as if to say, "You mean you can t pay? " What do these loan and credit card companies think they re going to be facing, when the amount of credit and mortgage they re willing to extend, reaches beyond the acceptable debt to income ratios? More consumers than ever before owe credit card debt. Why do they think these were established in the first place? It s the way to go, many college campus are overrun with representatives from the major credit card companies, eager to extend credit to the young fresh hands of the college student. No.

Are they as ready to work with them when they ve over extended themselves? What about the rest of the spending public? Well, thanks to the interest only loan, we can now pay off credit card debt we can t afford, with a mortgage we can t afford. How do they handle their credit card debt? Now, that s progressive thinking. This is not a wise option, if you re already spending more than your budget will allow. The interest only loan is now a tool for replacing non- deductible over extended debt, with tax deductible over extended debt, and the consumer continues to be the one to pay.

How about cutting back? No, because they don t make any money off of the fact that you spend less. Did that ever occur to the mortgage company? As a fellow consumer, each of us should take the time to question our spending. Is it necessary? Is it wise?

If the answer to either question is no, then don t spend. You don t want to have to make the decision between over the limit spending, warm bed, and a nice.

Read more...

The Key To Budgeting Is Now Going Over Your Budget - Dorothy Benson's Finance and Credit blog:

Purchasing a car can be very stressful and when it comes down to shopping for a car, you may begin to get confused on how much you should actually spend.

So Credit Card Rewards Are In Great Demand - Adrienne Gidcumb's Finance and Credit blog:

Everyone loves a good bonus.

Credit Bureaus Are Bound By The FCRA - Finance and Credit Articles:

Is lousy credit preventing you from getting that house, car or other things you always dreamed about?