Credit Card Debt - When is Enough Enough?

Most Americans have credit card debt; as a matter of fact Credit Card Debt is at a record high. From 1980 to 2006, credit card debt increased from $69 Billion to $1.8 Trillion. And the credit card companies are cashing in on all of the credit card debt. Over 70% of the profits made by credit card companies are from the interest and penalties they charge.

Credit card debt is a never ending cycle, and the credit card companies target specific markets that are vulnerable to credit card debt. They send millions of application to college students or people who are barely making ends meet with the idea of buy now and pay later. A large majority of these people, however, use credit cards to pay their rent or groceries and at the end of the month struggle desperately to repay their credit card debt.

Credit card companies are also notorious for changing the rules. At any time they can pull your credit report and if they see that you have either been late on your mortgage or that your debt-to-income ratio is out of whack. Then they increase your interest rate at will. This interest is then compounded daily so your credit card debt grows and grows. There is very little that you, the consumer, can do about it. The number one complaint with the Better Business Bureau is in reference to Credit Card Companies.

Let me give you an example of what a $20,000 credit card debt will really cost you. If you pay your minimum payments on time every month, it could take you up to 32 years to pay that off and will actually cost you as much as $54,427.12! That is based on an average of 18% interest. If, however, you make one payment late, and the credit card company raises your interest rate to 28%, it will cost you up to $80,480 for the exact same $20,000 debt! Credit card companies have you right where they want you - in debt.

There are debt relief options available to you - Credit Counseling, Debt Consolidation and Debt Settlement. If you are facing bankruptcy, one of these debt relief options may be a better fit. It is very difficult to qualify for bankruptcy due to the recent changes in the laws. Debt relief programs can save you years of hassles, thousands of dollars and a better credit ranking in the future.

Are you ready to say enough is enough?