Credit card debt.
Have you ever stopped to look at the bottom of your credit card statements? If you do, you will see the year to date amount of interest you’ve paid. You will also see the amount of fees paid year to date.
We’re all very familiar that when we make minimum payments on a credit card that it will take us several years to actually pay off the principal. When you look at those additional interest fees paid each year you’ll probably be shocked!!!
When you think about the amount of interest you’re paying each month and over the years you’ll begin to realize that you are working your job to pay off your creditors. You go to work day in and day out and depending on the size of your debt, it’s possible a large portion of your income is going to credit card companies.
By making these payments to credit cards month after month and year after year it’s as though you work for them! You have become an employee of the credit card company. You have become a residual income stream to your creditors with their excessively high interest rates sometimes reaching 29.99%.
When you finally sit down and put things in perspective and see that you’re driving to a job every day to pay your creditors, how does that make you feel? Unfortunately many of us out of habit make these credit card payments and not give it much thought. We may rationalize things with the simple belief that if we keep paying every month, eventually these credit cards will be paid off. Sometimes we fail to see how much interest and how much time it’s going to take to pay these cards off!
It’s important that we have an emotional connection to our debt. Although it may be painful, our avoidance will cause even more pain in the future. By ignoring our situation and not facing our reality, this debt may linger for several years! Not only do we have an opportunity cost of what that money could have been used for, we also tack on multiple years and thousands of dollars of interest compounding by avoiding the situation.
So the next time you receive your credit card statement I encourage you to take a look at that bottom portion of the statement. Look at that year to date amount of interest you’ve paid. Think about what you could’ve done with that extra income? Could you have gone on a vacation? Purchased a much needed new car? Had extra money for those unexpected emergencies? Would you have been able to put that money toward your savings?
When you allow yourself to feel the pain from the weight of your debt, then and only then will you become inspired to start taking action to get it paid off!
Get started today … Become aware of what you owe, the interest you are paying and put a plan in place to crush your debt!
Quit giving your hard earned money to credit card companies!
Submit your resignation now!
Wish you the best!
PS. Be sure to read ….