I heard [tag]Dave Ramsey[/tag] say this on his radio show today. He then followed the comment with “credit cards are the symptom of someone not being able to say no…” This remark was in regards to a caller, so don’t take this as blanket statement about credit card usage.

What he is saying is some people believe they deserve what they want when they want it even if they can not afford it. With these types of people credit cards enable them to get things they want and pay later. The cost over time is a [tag]huge debt[/tag].

My generation has grown up in an incredible time of convenience, prosperity and wealth. This environment has helped to bread our “want it now” at what ever cost attitude. I think about my grandfather who passed away 15 years ago and if he saw how my generation treats money he would roll over in his grave. He would be ashamed of some of the financial choice I have made in my past.

It’s about responsibility and self control. So before anyone jumps on me as someone who is preaching a [tag]frugal life style[/tag], this is not the case! If you want a new truck/car save for it or at least a big down payment. Do you want a tropical beach vacation every year? Well give up your daily Starbucks coffee and save the money for your vacation.

It’s about choice and I choice to live [tag]debt free[/tag].

I was watching TV this weekend and I saw numerous “[tag]Life takes Visa[/tag]” Commercials. I also see these billboards all over the city. If you haven’t seen the commercial the basic gist is as follows, life is too expensive and there are so many things we “want” to do and buy so we need a little help from your friends at Visa to accomplish these goals.

Using your Visa to pay for things you really can’t afford is one way to live your life or you could save money and [tag]pay cash[/tag]. It’s a free country so you make the choice.

But keep this in mind.

You will end up paying much more for the item than if you had just paid in cash. The amount of money you use to pay your Credit card minimums subtracts from the money you could put into a savings account or other investment accounts, which stops you from building true wealth and a secure future. If you amass too much debt the stress involved is enormous. This can take a hefty toll on your relationships with those you love. For this reason alone Visa should change there slogan to “Visa takes Life.”

Yes, life is expensive but just because you want it doesn’t mean you should have it right on the spot. I was once one of the legions of Americans who bought into the “Life takes Visa” way of life, but after creating a [tag]debt hole[/tag] so deep I thought I would never get out, my attitude changed real quick.

I changed my situation around by doing the following:
Realize there is a problem with your spending habits
Stop spending on [tag]credit[/tag]
Put together a budget
Put together a [tag]debt reduction[/tag] plan
Take action
Stay focused

You will be [tag]debt free[/tag].

 If you are in the same place as I was years ago you can get out but you must get focused and change your attitude about spending, and you must do it now!
 

The true cost of paying the minimum on your credit card will suprise you, if not scare the day lights out of you. If you need a reality check please check out this very cool tool over at bankrate.com

Talk about motivation to pay off debts!!! And motivation is half the battle. Have a good weekend!

technorati tags:paying the minimum on your credit card, debt

I found this article on ExineArticles. It’s titled How to avoid late fees. I have one simple full proof method, pay on time!! No need to read this article, just pay on time. However if you want to read it you can.

Everyone hates late fees and being late will cost you dearly these days. For some credit cards today, if you are late, you will have to shell out as much as $40 each time. This can put a nice sized hole in your pocket really quick.

How to Avoid Credit Card Late Fees

technorati tags:avoid late fees

Be careful when you close a credit card account. Make sure it will not hurt your credit score. Check this resource I found which can help you close the credit card in the right way.

There’s a Right Way, and a Wrong Way, to Cancel a Credit CardThe first thing to do is make sure you have a zero balance on the card or it’s likely your card issuer will raise your interest rate as soon as you’ve cancelled in order to squeeze our as much from you in interest as possible.Start with a phone call, and remember to follow up in writing and to check your credit report to be sure the closure is reported accurately. Some creditors will report the account as “closed by credit grantor” which has a negative connotation and can hurt your credit score.

There’s a Right Way, and a Wrong Way, to Cancel a Credit Card

technorati tags:Cancel a Credit Card, credit, debt

NEW YORK (AFP) – Visa and MasterCard agreed to pay a total of 336 million dollars to settle a class-action lawsuit alleging the credit card firms shortchanged US consumers in foreign currency transactions, a regulatory filing showed.

Visa, MasterCard to pay 336 million dollars in currency suit – Yahoo! News

Look like they were adding surcharges to credit and debit transactions with out disclosure!

Well gald to hear the little guy one on this one.

technorati tags:credit cards, master card, visa