If you are in tremendous credit card debt then chances are that you never learned to budget your money and are an impulsive buyer unable to control your overspending habits. You are not alone. That is the predicament of many Americans and the government is just as irresponsible with money judging by the incredible national debt which it has gone into.
If your credit card debt is from about $40,000 to $100,000 then scaling down your spending habits with the help of financial budgeting is the only way out which means less money spent on eating out, no new car purchases, less spent on clothing, less spent on entertainment, less spent on luxury items, no vacations away from home, and not having more offspring if you have some already. You will just have to change your bad spending habits by prioritizing money and only spending it on the most important necessities in your life.
Google or Bing money budgeting to get advice on how to categorize your expenses and only spend up to the money limit of each category each month. Each month or paycheck you should include money saved for emergencies such as house repairs, appliance repairs, medical expenses, and even some saved for retirement.
If your credit card debt is outrageous or about $200,000 and you are paying about 15% interest on it then you are paying about $2500 dollars a month extra and pissing it away with no benefit to you. That is paying about $30,000 a year or the price of a new luxury car each year. Pay this amount for 10 years and you could afford to pay off a $300,000 house.
What should you do? Bankruptcy is an option and you can talk to an attorney but one way is to stop payment on all the credit cards and negotiate a lower payment schedule with the credit card company. Tell them that you can afford to pay them 7% interest and no more and threaten not to pay them anything if they don’t agree to your terms and mention your outrageous credit card debt amount.
If you succeed then your monthly payment to them will be approximately half the usual amount. If your attempts at negotiation fail then stop payments, rent a safety box at a bank, buy gold bars with the money you save from monthly credit card payments, change your phone number to avoid harassing phone calls from the credit card companies, and wait for court summons from each credit card company. Court summonses may take up to a year to arrive so you will have plenty of time to save and prepare yourself for the legal bullshit.
When you go before a judge then state your outrageous debt amount and tell him you can only pay 7% interest on the loan. Chances are the credit card company will not have any lawyers present but will teleconference via the telephone and agree to your terms. If the credit card company does not agree then some judges may put a lien on your house or maybe even garnish your wages but this is highly unlikely since it is an unsecured loan and legally improbable.
The worse case scenario is that your wages will be garnished and you can then declare bankruptcy and live off a debit card for a few years with the help of your gold savings and even quit your job if you are single to show that you have no earnings during the bankruptcy proceedings.
The credit card companies tried to screw you with high interest rates designed to enslave you for a lifetime. It is time that you say screw you and go through the legal bullshit with conviction that you will come out of your bad situation in better financial health than before. Bad credit is a fact of life for more and more Americans and it is time you learned to budget your money and live off of a debit card for a few years!!!!!!
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