We' Ve Paid Off Almost All Of Our Cards With One Left To Go

Category: Finance, Credit.

Here's a financial tip that's an answer to a letter I recently received. We' re finally getting on top of the situation.

Debbie asks: "We' ve been battling credit cards for most of our married life. We' ve paid off almost all of our cards with one left to go. It makes me extremely angry to get two and three new offers of credit cards almost every day. It feels good! I take great joy in tearing all of them up and throwing them away. Interest rates are astronomical! The minimum payments have gone up.

Is there anyone who goes to bat for the consumer on credit cards or are the big banks just leading us to the slaughter? Thanks! " First of all, congratulations on your efforts to get out of debt. It appears that the banks can do about anything they want. This has to be a major priority for all Christians. Unfortunately, the banks have a lot of power to influence Congress, so they are able to do just about anything they want. We are to be slaves to Christ, not to lenders.

Which means anyone who has credit card debt knows what Scripture is talking about when it says, "the borrower is servant to the lender. " You' re doing the very best thing you can do to control the banks- - pay off the cards. If you can' t control your spending with credit cards, cut them up and stay away. And then stay out of debt. Credit cards are a great tool if you know how to control them. Researchers say that the average person spends about 30% more when they use a credit card compared to using cash only. Unfortunately, most people don' t. That's why radio talk- show host Dave Ramsey tells all his listeners to cut up their cards.

Remember, the banks make money with credit cards three ways: interest charges, late payment and other user fees, and through merchant fees( fees charged to the companies that accept credit cards) . I think that's the best course of action for most people. The latter will often result in higher prices you pay for the things you buy. If you decide to use credit cards, you must pay them off every month and use them only for items you would buy with cash. The first two, you have more control over. That means you have to stay within your budget. But if you can' t, then cut them up.

If you can do that, then credit cards are a good tool to use.