Some Very Strong Reasons to Avoid Credit Card Debt

It is tough borrowing money and having to pay it back for much more than the initial amount. But without lending institutions, we usually would never have enough cash to lay down for a major purchase like a home or an auto. And then there is credit card debt. Those who are in heavy credit card debt wonder how it every got so bad and why they ever chose that debt at all. Hopefully, through the assistance of credit counseling and a debt management plan, you will have learned some lessons of why you should avoid credit card debt. And for the sake of passing the truths on to your children, here are the strongest reasons to avoid credit card debt:

Credit card companies have engaged in questionable activities in recent years. We don’t borrow from loan sharks because they are usually loaning money illegally and have been known to “collect” through violence. We don’t borrow from payday loan companies because their interest rates are almost criminal. But if you read the recent reports and press on credit card companies, you will see they are pushing the envelope when it comes to fair credit. They do things like universal default, lowering your credit limit without telling you, and continuing to add on interest, late fees, and overlimit fees even after the account has reached its limit. They managed to lobby the U.S. Congress and make it harder for people to file for bankruptcy yet they will still send you credit card offers. It is insanity and it’s all to get more money out of you.

Many collections agencies push the limit of the law. If you worked in a job where your paycheck depended on results, you would do anything you could to achieve those results. It is no different with the collections industry. Yes, there are laws and the Fair Debt Collections Practices Act (FDPCA) but when that collector needs to collect that credit card debt to be paid, he or she is betting on the fact that you might know nothing about these laws. These agents know the tricks of the trade when it comes to collecting charged off credit card debt. For example, the FDPCA states that a collector cannot call a debtor outside of the hours of 8:00 AM to 9:00 PM local time. But if you have ever been in the debt nightmare you know that occasionally, one will call you at 7:00 AM. What are you going to do about it? Can you prove it was a violation? They are betting you will probably not be able to do much about it.

You and your credit card debt do not exist in a vacuum. Another strong reason to avoid credit card debt is because it pulls in family and friends and affects their lives too. For example, there might be a family member who can’t get credit because of a bankruptcy and someone in the family cosigns so this person can get a credit card. Then, this same family member goes into default again leaving the cosigner liable for the debt. Or, worse yet, the family member dies leaving the living cosigner with the credit card debt. Even if you don’t get cosigners to help you out, your family and friends are burdened by your credit card debt because when it becomes a problem they want to reach out and help you but can’t.

To learn more about avoiding credit card debt, visit credit card debt payoff , your total debt information resource.