Why would anyone write an article about staying in debt. We all want to get out of debt, right? Unwittingly some of us are doing things that will keep us in debt forever, here’s a list of 5 things to think about.
That’s Right! Don’t pay your bills. Sounds crazy right? But it works. Just imagine, if you don’t pay any debts down they can continue to grow, month after month until you finally have a judgment against you. This can ensure your credit always has negative comments and someday you’ll get to pay. It will also help everyone charge you extra whenever you want to buy something on credit. This can be the beginning of an eternal nasty downward spiral. Think of it like the toilet bowl effect, spinning around getting tighter and tighter until swoosh! Everything is gone.
Pay only the minimum payment. Just look at your credit card bill. Have you noticed that the company is now required to show you how long it would take to pay off the debt paying the minimum payment? Mine shows it would take 18 years, and if I make a few more charges along the way it could last even longer. Credit cards can be great tools for quick financing, but for the average person credit cards are great big immediate satisfaction traps. Best case scenario for them is you pay late every once in a while, charge up your balance and make minimum payments.
Always spend more than you make. This is the one of the easiest ways to stay in debt. Once you start the cycle, you can never catch up. As long as you spend a little more than you make each month, you will continue to let your debt grow. Oh yeah, here’s a tip, as soon as you run out of savings, you can start using your credit cards and make sure you only pay the minimum payment.
Don’t forget to make your payment late. This is a key point. You can add an average of $40 or so on your bill for each payment you make late with your credit cards. The mortgage company will also be happy to add a charge of around 5 percent for making a late payment. Even the utility companies can help you here as they will charge additional late fees.
Yeah, that’s right use your credit cards. They are a great tools for keeping you in debt. In addition to those late charges, the companies are always anxious to raise the interest rate as soon as you are late so they can compound the interest even more. Sometimes as high as 25%. But that’s not all, they have over limit charges, cash advance charges, special super high rates for those advances and transaction fees on top.
These five tips will surely help you stay in debt. If you are still having trouble, just look to your government leaders. They have the system down. Once you have enough debt, the interest will accrue so fast that it seems nearly impossible to correct. Just follow the national debt and you’ll see a perfect example of how to always stay in debt.