When we are in debt we are powerless. Creditors have the power. They have the power to:
- Close our accounts
- Send us threatening letters
- Harass us on the phone
- Search our neighborhood to find people who have our contact information
- Garnish our checks
- Take us to court
- Ruin our credit
- Increase our interest rate
- Charge us outrageous late fees, over-the-limit fees and annual fees
When we are in debt and have bad credit we are at the mercy of the creditors and have to agree to their terms. We beg and plead and silently say "don't close my account", I still need to go shopping for things you can't afford. Don't take me to court, I know I don't have the money but I am trying to keep up with everyone else and look like I have money when I am really living paycheck to paycheck or am almost bankrupt.
We have to learn that everything has a price. What's your price? A nice pair of shoes, a Coach purse, a Hummer, a nice house in Bowie or Fairfax, designer clothes?
What are you willing to pay for those items? Will you sell your soul to buy that pair of Manolo Blahnik shoes that you just have to have.
Unfortunately in this economy many people are in debt due to loss of a job, medical expenses or health issues. I feel for these people who do not have enough money to buy basic necessities and have to use their credit cards to purchase those items.
Unmanageable debt can be prevented. Instead of buying an expensive house or car, but a modest house or car. Keep that for 3 to 5 years then you can upgrade once your financial situation improves.
Know the truth and think twice before you sign over your soul for that shiny new credit card.