The theme that motivates me write is that recently i noticed as many of my friends and acquaintances i have what initially seemed to them a benefit became a nightmare financial: credit cards.
Many of us dawn a day with the arrival of a on the content of which is a credit card inviting us to enjoy the services they offer.
From our acceptance we fall into an endless of temptations to acquire goods and services that never thought we would be able to acquire. We ended up with a debt that while our income will enable us to comply with the payments in the terms that require the issuer of the card everything is perfect and wonderful, ask an extension of our credit limit to increase our levels of consumption and ratify our creditworthiness of payment to aspire each day to more.
If all this has happened let me tell you with the respect they deserve it fell in the great trap as i fell also 5 years ago. When that happened and check my account statements, looking for the formula, to pay high monthly contributions i realized that he had anything to correct. I fired my work by reducing staff, i fell into arrears or late payments and the banks I am not perdonanaron mates such drastic measures that were difficult to fulfill. At the end managed, with much sacrifice, cancel my debt but i realized everything that i was given credit cancel in quantities three times greater than its value by the high interest rates charged by the bank.
The credit more expensive are those of credit cards, no instrument cobra such high interest and its fundamental reason is that the bank has no good or guarantee that support your consumption. That is the real reason why the banks are seeking that you consume the more he can to after billing the highest rates for their benefit.
However, many people tell me that still see the credit cards as their perfect instrument to acquire what they want and we care about the level of indebtedness that can reach and don’t realize that reaching the term are in constant exposure or risk of a financial disruption at any time by any event of life: accident, health problems, theft, dismissals of labor, etc. The question that i i would be How To be if instead of paying religiously minimum quotas or overtime to fulfill your commitments of debt inverters monthly that money or what you save? Do you in that situation be now? I believe, without a doubt, that much better financially.
In order to live without the need to use credit cards to buy goods and services that you need a plan that you what i am going to summarize:
1. Performed a budget of all your sources of monthly income and your costs, the remnant determined as cash have for the next step.
2. You will have to save for an emergency fund equivalent of three to six months of your monthly income. If these already indebted to the ceiling with your credit cards, this step requires greater effort and sacrifice with the search for additional income.
3. Make a list of all your debts with its balance and amount to pay minimum each month. Divided this list of minor to major debtor balance.
4. Once made the first three steps starts paying the debt Num 1 with a higher amount minimum balance, the rest of the list keeps your payments cancelling the minimum amount required.
5. When you’re finished for debt cancellation Num 1, the amount that usually pajamas by debt 1 is the amounts to the amount that pajamas by debt 2 and so on.
6. In this way is cancelling debts smaller, giving you motivate following the plan because these displaying as you progress in your goal of rid of debts?
7. At the end of pay all your debts, the sum of all your contributions now contribute to your monthly savings up to a year of emergency fund.
As you can see is a very ambitious plan that requires much sacrifice and steadfastness but that will give some fruits spectacular very short-term. It is a plan that will teach you the true value of money and you prove that if it is possible to live financially stable and never use credit.
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Posted in Credit Cards | 
Tags: credit cancel, Credit cards, financial disruption, nightmare financial, trap of credit cards