How To Get Out
Thousands of people search online each month for strategies on How To Get Out Of
Debt. If there is anything the latest financial crisis has taught us it's that there is a generalized debt
crisis in almost every corner of the world except Asia. The primary culprit is the consumerism attitude that has
become so pervasive in our society.
In 2009 when consumers stopped spending and started saving some money everyone panicked! Everyone from the
government to the local car dealer began to strategize how to get consumers to spend now! After all, consumer
spending including health care makes up about 70% of the U.S. economy. NO ONE wants you to
be debt free!
In A World Of Spending, How Do You Get Out Of Debt?
First and foremost you have to take a make the decision that you want to be debt free. One day I made the
decision that there was really nothing more that I needed to be happy. The things I was purchasing were making me
miserable instead of happy because they were adding to my debt load. I was spending more and more of my income just
to pay for interest costs. In fact, it was in June 2000 that I hit the low point of my business life. After
struggling for nearly 4 years to get my Online Marketing business off the ground I had reached the end of my credit
rope. In addition to a $40,000 business loan I had raked up 3 credit cards to total
$32,000. Additionally, out of desperation I had borrowed even more from former clients and family members. It
always seemed that I was just on the verge of success, so I hadn't curbed my spending habits to keep them in line
with my income.
It was then that the interest rates on 2 of my credit cards suddenly went through the roof. One of them shot up
to 24.99% and another card went to 21.99%, this was despite the fact that I hadn't missed any payments. I then
assumed it was because my cards were nearly maxed out, but years later when I pulled my credit
report I found an error on my credit report that had caused this issue. I researched how to resolve the
error but by that time it had cost me hundreds of dollars worth of interest per year. If you think your interest
rates are too high make sure you pull a Free Credit Report to see if there are any issues.
Start Paying Off The Highest Interest Rate Debt That
Has The Lowest Outstanding Balance
For me the top priority was to pay off those two high interest credit cards that were
basically 21.9 & 24.99% as they were killing me financially. For several years I had been receiving
0% offers in the mail to open new credit card accounts, so I grabbed a Capital
One offer and applied over the phone. Even though I had received a prequalified offer she
said they couldn't make an immediate decision and I would receive confirmation in the mail within a few days.
Obviously, that was a bad sign and remember this was before I knew there was an error on my credit report. When I received the confirmation letter a week later it
said I had been denied for the card. Not only had I been declined for the low interest card, but I
couldn't get any account with them that was lower than 20%! This was truly shocking and it was
apparent that creditors felt I was a sinking ship and wasn't in need of another credit
card. With no easy solutions available, I had to make some hard decisions and start paying things
off the hard way!
Fortunately, it wasn't as hard as I anticipated! You can follow what I did to get out of credit card debt