Settle Your Credit Card Debts To Get Rid Of Financial Death Of 1000 Cuts
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You know what the “Death of 1000 cuts” is right? It is an old form of Chinese torture where they would put various tiny cuts all over a person’s body so they would bleed a slow death from all of the little cuts. Obviously this method of dying is horrible.
This really is what happens to you when you’re deep in credit card debt. The only difference is that you won’t actually die from it. You personally won’t die, however your money is bleeding out of control and your credit card debt is seemingly painless.
Think about when you get your credit card bill in the mail. Chances are you’ll take a quick glance at it and it tells you a particular percentage interest rate. You don’t think much about it. The credit card company surely doesn’t want you to notice simply how much that particular rate is. So you go along paying around the minimum balance but you don’t realize that the interest rate is slowly bleeding you out monetarily.
Let’s take an easy example. Say you have a credit card with $2,050 dollars on it. Your minimum payment is $50 so you pay $50 and it leaves you with a balance of $2,000. The problem is that your interest rate on this card is 15%. So you are growing in debt faster than you are getting out of it. 15% of $2,000 is $300. Indeed, $300 dollars of your money being taken away from you.
Here is where the Death of 1000 cuts comes in. You don’t physically see the $300 coming out of your purse or wallet. You essentially don’t feel it. Yet, you are bleeding money and don’t realize it. (NOTE: this is often why experts advise that if you are trying to save money, only pay in cash, that way when the money is gone, you physically know it’s gone.)
The Credit Card Debt Death of 1000 cuts hit home owners like me pretty hard the other day. I was eating lunch with a friend of mine. We hadn’t really ever talked about money before, however he knew I did debt settlement for a living. Then he asked me how our debt settlement program worked. Of course, I explained the debt relief program to him and then I asked him the real question. How much credit card debt do you really have? He told me $40,000. Now I know people with more credit card debt then this. So if you say his average interest rate is 10% of his credit then that is $4,000 a year! Whoa! They are actually higher!
Actually this isn’t the part that got to me. The part that got to me was that a week later went to lunch at our usual spot and this time my friend wanted to show me his new car. I just couldn’t believe it. Well I am not suggesting not having a car, but he clearly did not see just how much rate of interest was eating him. With all honesty, his credit card debt was bleeding him but he didn’t feel it enough to realize that making car payments was only adding to his problem.
Credit card debt settlement from Indiana debt relief and Virginia debt relief is a great option to stop the bleeding money from your wallet. Sure, your credit is going to take a small hit in the short run. However, you got yourself into the credit card mess in the first place. With credit card debt settlement from Indiana debt relief you get to stop paying high interest and come to a settlement with your debt that has been bleeding for a long while. Stop the financial death of 1000 cuts, contact us about your debt relief options.