I think it is remarkable how many people I know claim to be financial secure and live on their credit cards. What I have found is that these folks consider themselves secure because the have a good enough credit score to obtain a credit card or request an increase in the limit. Is this really much different them living paycheck to paycheck?????And, by-the-way, who devised this "magical credit barometer", this credit score thingy? I think, though I may find I am mistaken, this system was created by the very same people who provided me with those small rectangular pieces of plastic that allow many of us to spend beyond our means. It's like an invitation to debt!
My story is probably not much different then most. I received a letter in the mail congratulating me on having the opportunity to open an account with one of the many companies providing credit. Elated that I had finally achieved a level of success that was being recognized on my accomplishments I hurriedly responded and was awarded with a shiny piece of plastic that had a moderate limit. I had not had the benefit then of knowing that if I didn't manage this properly it would soon get out of hand. I didn't, it did! And the modest initial interest level quickly rose. When offered an increase I naturally accepted and, well you get the idea. One card lead to five and I became part of that American way of life....unable to pay down the debt and the interest fast enough.
I freely admit today that I was irresponsible and like so many before me my debt became impossible to pay on the income I was making. Unable to come up with a solution I simply stopped paying them and became one of thousands who avoid answering phone calls every day from unknown phone numbers for fear that it is one of many "law offices" retained to seek repayment. Now I could go on about that end of this discussion, but what interests me more is how something like the debt could happen in the first place?
In the midst of the economic crisis this country is faced with I am beginning to come to grips with the knowledge that like our nation I was never instructed on how to manage my money well...more importantly how to avoid unsecured debt!
I'm going to attempt to maneuver through this mine field in this blog and see where it leads. Starting tomorrow I am going to seek (rather...return) to a tried and true method. A 12-step program. Come back and see what I find out!
