YemmYemm Blog96911: Nov 18, 2007

Credit card debt, according to some sources, is the bane of the modern American consumer. If you believe the media, Americans are drowning in high-interest unsecured debt. It eats a large portion of our monthly income and prevents us from building up long-term savings.

Moreover, this glut of debt has spawned several cottage industries: get-rich-quick scammers buying up millions of old debts for pennies on the dollar, who then turn around and make a profit by collecting from consumers who have written off their old debt; debt consolidationlenders offering loans to help consumers shuffle their debt from one place to another, only to realize it hasnt decreased at all; bankruptcy lawyers who justify their astronomical rates by the new complicated bankruptcy laws.

Debt is big business, and its making a small minority of the population very, very rich. The rest of us have to figure out how to deal with our debt problems. Ive started to find a way to begin to deal with my own credit card woes; namely, Im trying to use them less.

This is not ground-breaking stuff, so dont expect a silver bullet or some quick scheme to eliminate your debt right away. No, my solution is simple, some would call it old school.

1. I hide my credit cards. Not where I cant find them, but I put them out of my sight. If I see them every day, Ill be more tempted to use them.

2. I get cash out of the ATM a few times a week. I only get enough to cover my expenses for a few days. If I run out of cash, I dont use my debit card and I certainly dont use my credit card.

3. I write down every dollar I spend. This helps me keep to a budget, but also, at the end of the month I examine my spending patterns to find where I can cut back. If I see myself spending too much in any one area, I find a way to reduce that expenditure.

So, these three steps help me curb my spending and avoid accumulating more debt. Ive found most other methods are just a band-aid, and true debt reform comes from changing habits.

Robert A Johnson is an expert in the various methods of debt reduction and has successfully reduced his own debt. He studied writing and English literature at the University of Dallas. He is also a ninja master. Please find the rest of his articles by following this link: http://www.creditsolutions.com/learning-center/author/admin3/

YemmYemm Blog96911

Sunday, November 18, 2007

Cash Keeps You Out of Debt

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