Circle of Credit


Do you remember how excited you were to get your first credit card? The freedom you suddenly have. The purchasing power.

 You put a little bit on it here and there and made the minimum payments - maybe a bit more - and pretty soon the card was almost maxed out. Then you get a letter from the lending institution.

 They are offering to raise your credit limit. That means you will have more money to spend, right? The creditor tells you that it is good to have the extra monies available. You don't have to use it but it is nice to have just in case you have a large purchase to make. Having the extra room on your card will make life so much easier, right?


An increased limit on your credit is NOT going to make your life easier. It is not going to be there in case of emergencies. Increased credit limits on credit cards are just going to cause you more stress and get further in debt.

 I know, you know and the lending institution knows that you more than likely won't leave that extra room for an unforeseen emergency. You will probably chip away at it until you are once again maxed out on the credit card. Then another letter will come from the creditor and the circle repeats itself. You are getting further and further into debt, sinking yourself into a financial pit you won't be able to climb out of. Your choices to get back on solid ground will be limited and your financial health will suffer.  As will other areas in your life.


And don't think that your creditors are going to be on your side. They are warm, friendly and helpful when they are extending credit to you, when you are racking up the bills - and making payments - but the moment you start missing payments, they will no longer be your friend. And why should they be? Their goal is to make money in order to pay their employees, the expenses of the lending institution and please the stockholders. It's a business and their goal is to make as much money as possible.

 Start treating your financial matters like a business. Because it is, isn't it? It is the business of your life. Work to keep those credit card balances within manageable limits. Don't let the credit card companies seduce you into a situation that is unhealthy for your financial well being.



If you feel that you are ready to gain control of your debt, then stop trying to figure it all out on your own and make sure you don’t go another year without gaining control —click here
 
I might be able to help you by supporting you through the 5-Step Financial Stability program that I have used to get control of my financial situation. click here

To your success, 

Karen Magill 

P.S. It is NOT right for everyone – but if you feel having me working with you almost “daily” & giving you a proven step by step system to follow will help you get your  finances and life back on track then for more details. - click here 

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