We all have goals to eliminate debt and a credit card debt elimination strategy is key because it is a huge portion of debt in America. I recently watched an interesting documentary on frontline called “The Card Game.” It told the story of our current credit crisis through the eyes of the banking and credit industry.
I was surprised to hear the brutal honest truth these people talked about credit card “game” in America. It was said they specifically went after the less fortunate population who did not have access to credit before.
This new market was specifically targeted and given access to credit and loans they could not afford to pay. And, because of little or no regulations were in place, the risk for these people and the banks were very high.
The idea was to get these people, most of whom are financially illiterate, to get trapped into these loans and lines of credit so the credit card and banking industry could catch them in a web of debt. This is the genius of this game, because they made so much money on high interest rates and penalty fees, it is ridiculous.
Now, the credit card companies and banks will tell you that people are responsible for their own financial well-being. But, though that is partially true, I would like to say they knew they preyed on these people and they ruined a lot of lives just to make more money. And, in the end who bailed them out…the tax payers?
This game of credit proved to be financially fatal for millions of Americans families. Now that we find ourselves in a terrible economy, and who is going to bail us out?
So….we know the majority of us are in credit debt today and there are so many people trying to give us advice on how to eliminate that debt. And though there may be some good things that can help us all, I think the key thing in eliminating debt is to have a purpose, or a strategic plan to pay it off. To me, there are two good ways to pay off your credit card debt with purpose.
The first way is to plan to pay off your credit card debt by lowest balance. Paying off your credit cards with the lowest balance first will allow you to use that extra cash to focus on the cards with a higher balance.
The second strategy to eliminate your debt would be by highest minimum payment. By focusing on your highest minimum payment you can quickly reduce the percentage of your income that must be used to pay off debt. So, remember, it’s not enough to randomly pay your bills, you must learn to have a strategy to pay off your debt with purpose!
Watch an interesting documentary on frontline called “The Card Game.”
- The Card Game Documentary
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- Barack Obama’s Controversial Vegas Remark, Shed Some Light on American Debt
- 3 Tips to Eliminate Your Mortgage Aggressively
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