OUR ECONOMIC HOUSE OF CARDS is showing it does not have a very strong foundation as our economy spins into the ground. This tailspin highlights that credit can be bad if you are not using debt to make more money. For instance, if a business is suddenly in a state of emergency, the first thing it needs to do is to promote its products to the public. That’s number 1, then they need to restrict spending in other areas. If you have to borrow to promote, then do so. Otherwise, you will surely go under if you don’t promote and then restrict spending.
That means that debt to buy stuff for the house, or yourself, would not be good debt if it doesn’t help you get out your products. For a business, debt in order to get nicer furniture or better desks would be bad debt if it didn’t help to get out more product to the market place.
PAYING YOUR CREDIT CARD DEBT
We are facing serious pay cuts and this is going to cut into your ability to pay your debt. What do you do?
Well, you do what everyone else does – make your house or apartment payments and living expense, pay your car, if there is anything left over then pay your credit cards.
See, the responsibility for the $2.3 trillion of consumer debt includes those companies that put you into debt as well as you who took out the debt. The credit card companies and banks know what they were doing when they put you into debt. They knew the consequences of making sure you were buried in debt.
But, the ultimate responsibility is yours, because you didn’t have to take out those credit cards and use them. Now, you may be using them just to live and of course that buries you even deeper.
THE SECRET HISTORY OF THE CREDIT CARD
Here is an excellent show from PBS Broadcast titled, The Secret History of the Credit Card. Click on this and watch this show. It won an Emmy for investigative reporting. http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/
It’s not the end of the world if you can’t pay your credit card bills. We can help you find out how to make it through troubled times with your creditors. Call us for a free consultation – (866) 998 – 5551.
And, don’t forget to watch the PBS Frontline Special Report, The Secret History of the Credit Card. You’ll be amazed.