Please do not answer if you are debt-free. I want to hear from people who spend more than they make and carry big balances. How did you get into this position, and why don't you stop spending until your debt is paid off?
2006-07-28 01:43:37 · 11 answers · asked by keepsondancing 5 in Business & Finance ➔ Credit
I'm debt free, but I was in debt before, so I shall answer anyway..
You never plan on getting into debt, it just happens... You charge something for $500, and figure "ahhh I'll be able to pay this off in a month".. when the bill finally comes, you go "ahh, but I wanted to do this or that with the cash, so I'll just send $200.. I'll get the rest next month..." next month comes, same thing.. then. your car breaks down, and since you spend everything you make, you need to break out the plastic again. the cycle begins.
it's all caused by living above your means, and lack of discipline.
2006-07-28 02:36:04 · answer #1 · answered by kvuo 4 · 5⤊ 1⤋
I am a little over $10k in credit card debt alone. Why, well I have my Home Depot card that was used to remodel the house I shared with my now ex-husband. He had one as well and when we divorced we agreed to keep our individual accounts and pay them off. I have a Bank of America card that was paid off a year and a half ago but then charged back up to pay the first months rent and deposit for a place when I left my husband. It was also used to semi-furnish my new place (I didn't need much because I took everything when I left him). I have a Visa card that I opened to transfer the balance from my Bank of America card (that was how I had the BOA card paid off). I have a Sears, Gap, Belk and JC Penny card, all used to buy clothes when the need arises. I'm carrying BIG balances on only 2 of the cards mentioned. Unlike most people with credit card debt, I have a plan that's been in action for 6+ months that is getting me out of debt and you can rest assured that it won't happen again. And also unlike most people, even though I have credit card debt, I have excellent credit because I always make my payments on time every time. With my get out of debt plan I focus on one card at a time. That one card gets 10% of our income every week, plus the minimum payment that was due on the card, which amounts to a little over $400 paid by the end of the month and the other cards get the minimum payment. Once the card targeted gets paid off I'll focus on another one. I also make these payments online every week which helps with the interest. The more I get paid off before interest hits the less interest will be when it hits.
2006-07-28 02:58:52 · answer #2 · answered by purpleama456 4 · 1⤊ 0⤋
We bought a new house and that great. But then you need this and that and this and that and before you know it is was out of control. I know have us a a pretty strict budget I pay as much over the minimum amount that I can. Every debtor gets paid every month some get the minimum and others get a little extra. I have also used the balance transfer checks that offer a much lower interest rate than my credit cards and use that to pay off some higher balances and then I have reduced that debt and the higher interest rate.
2006-07-28 02:26:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
People of today go in to credit card debt because some people draw from over their credit limit and or some people leave their account without paying or not on time and then interest is applied which makes it more.
2006-07-28 01:47:50 · answer #4 · answered by Niki !!!! 2 · 1⤊ 0⤋
I have debt and am really looking into credit counceling of some sort we got into debt cause we were married young first home and all then we had kids and it just kept piling up we pay our bills every month but can't get ahead adn we are just sinking. We have stopped buying but it is still hard to dig your self out of that hole, it is so easy to use the credit but oh so hard to pay it off.
2006-07-28 03:03:59 · answer #5 · answered by life as we know it 4 · 1⤊ 0⤋
I have debt, but I'm paying it off...
I hate debt. It's easy to do when you are married / engaged / actually just around any women at all. Women love to spend. I blame all women. Haha, j/k. Some people just like to spend money - they don't care that they dont have it. It's an addiction; they can't control themselves.
2006-07-28 01:46:40 · answer #6 · answered by boris 5 · 0⤊ 0⤋
cuz we're stupid and they are so easy to use with gas prices these days and other prices that are sky high. i don't know of anyone who doesn't have credit card debt, whether it is a gas card or a different kind of credit card. i don't carry any cash.
2006-07-28 02:41:15 · answer #7 · answered by koifishlady 4 · 0⤊ 0⤋
Because we live in a society where 'I saw it, I want it'. No one wants to wait til they save up for it. Gotta have it now. All my friends do. It's an inner need for something that comes out as spending.
2006-07-28 02:02:47 · answer #8 · answered by cowgirl 6 · 1⤊ 0⤋
They either live way beyond their means, or they are blind to the fact that when you charge something, a bill will follow this charge.
2006-07-28 01:47:21 · answer #9 · answered by WC 7 · 0⤊ 0⤋
Because it's easy and fun.
2006-07-28 01:47:10 · answer #10 · answered by Anonymous · 0⤊ 0⤋