Sunday, November 23, 2008

Get Serious About Clearing Your Debts

Debts have permeated life in America so much that it is almost ridiculous. Mortgage brokers, car salesman, and credit card companies flood our mailbox every day with tempting offers. And the expansion of credit is what is causing so much of the economic woes today.

It is easy to fall into debts but clearing your debts is far from easy. It’s a shame that many Americans are debt laden(at last count, Americans have an average of 7-8 credit cards). Are such spending habits sustainable?

The hardships which arise from termination of credit lines and raising of credit card interest rates during this financial crisis drives home the fact that we should get serious, once and for all, about clearing our debts.

Credit card debts are the worst. It has the highest interest rates, aside from payday loans which you should never go near. A car loan is unnecessary too. Even if you get a good rate, you could have gone used or cheaper and skipped the loan. Save your money if you really want a brand new car.

Some debt is okay to have though, such as a mortgage. Unless you have your own business, this is really the only debt you should ever have. If you have good credit, you can put down a nice down-payment and have a low interest rate.

To clear your debts, it’s important to eradicate reckless money mistakes. Debt is a heavy burden, and the faster you pay it off, the better.