Wednesday, July 18, 2012

Are You Eating Up Your Cash Advance Loans and Credit Card Limits?

Is your debt piled up with cash advance loans and filled credit cards? More often than not, news worthy stories will be reported about people who are falling further into debt. Negative reports about online cash advances and payday loans are plentiful. Stories about Americans falling deeper into credit card debt are rampant as well. Every now and then we read a story about the individual who climbed out of being deep in debt. These stories are triumphant and proof that with a little hard work and a lot of determination, it can be done.

I just read one of those refreshing stories. A debt well into the 6 figure category was washed out in five years. Wow! That is an impressive feat. One of the reasons why I love reading these types of stories is that it refreshes my spirit to stay on task when it comes to my own debt. We all have our personal stories and circumstances behind financial struggles, but when I read proof of a light at the end of a tunnel; it makes me focus a little bit harder.

One of the strategies the couple in the story took was to keep their problems in clear sight. All thirteen credit cards (13 -Yikes!) were cut up and kept in a plastic bag on top of the statements. It was all kept in a basket in full view. Taking one look at their basket was their reminder to spend more wisely and stay focused. The point is that they found something which worked for them. What would work for you? Unless there has been a loss of employment or medical debt, a big factor in American debt is the "I can" factor. This translates into spending beyond one's means because of third party money availability.

Third party money comes in all shapes and sizes. In order to have a good credit score, there needs to be different types of credit being used. It sounds like an oxymoron to me. You have to have debt in order to get a good credit rating, but if it is not utilized perfectly, finances will suffer from it. Similar to it is food; everyone has to eat, but how diet is managed along with other factors will determine the health of a person. You can't control outside factors for either one. Certain illnesses can affect a person's diet and losing a job can affect a budget. All anyone can do it to keep at it and evaluate often.

Whether you are working at getting rid of a pile of debt or that extra roll along the mid-section, don't let one error cancel out all your hard work. Stay on course! Hide the credit cards and avoid using short-term cash advances unless it is a true emergency in order to keep the debt from rebuilding. Credit counseling may be a good starting point for those who have difficulty budgeting income with cost of living. Whether you are cutting out debt or losing 10 pounds, you will have to cut out somewhere. Acceptance is the first step to making any program work. It is easy to blame the credit card companies, the speed of a cash advance online or the empty bag of chips: but let's face it, none of them forced you to consume the extra.

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