| From Good Credit To Collection Debt |
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| Written by Barbara Thompson |
| Tuesday, 18 May 2010 19:20 |
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In most cases, 20 years ago, the consumer had a job earning a living to pay for staples - food, clothing, shelter. The bills were paid. It sure would be nice to own a house instead of renting an apartment. One day somehow some way home ownership could happen. Your credit score was fair. No debt. Work more, save little. Costs of living were going up, but the income was stagnant.
In most cases, 20 years ago, the consumer had a job earning a living to pay for staples - food, clothing, shelter. The bills were paid. It sure would be nice to own a house instead of renting an apartment. One day somehow some way home ownership could happen. Your credit score was fair. No debt. Work more, save little. Costs of living were going up, but the income was stagnant. Regardless of your credit, credit card offers come in the mail for the consumer. We were under the impression that you had to have excellent credit. Having a credit card used to be a status symbol. Credit cards WERE for consumers with an excellent score which was rare. Now in the 2000's, there are "fee-harvest" cards targeted for consumers with lower scores of 600s. Many fees bring profit. The offers are in the mail and on tv and NOW on the internet in your email. Why do we bite and take the offer? What compels us to get the card? There is a lure with internet, media, tv, radio, mail, to have little bit of this and that instantly. Travel, entertainment, clothes, toys, dinner out, why be deprived? Do you want to pay 10x over the actual amount or be deprived? What if you need to pay tuition or you are starting a business? What if you cannot qualify for a loan? Can you get a card now to fund the future when you WILL be generating income? Will that plan work? You have to change your thinking. If you do not understand how you got to the place of collection debt, then how can you ever rid yourself of it, have debt freedom and become wealthy? Present day, now the (single) consumer gets married and there are more credit cards, mortgage (yeah) and car payment. Two incomes, bills are being paid (barely). Although it is a six figure income living in middle class America...the debt to income ratio WITH the credit cards makes it difficult to pay more on the cards and get rid of them. At this point, you are overextended. Are you saving for a rainy day? Eighty percent of America is facing this type of scenario. There is hope and a solution for change. Crisis comes. Unforeseen circumstance. You cannot predict nor can you control it. Loss of shelter, illness, death, divorce, job loss. It is life. Credit does not matter and six months pass by. You are dealing with your hardship and the collection agencies start contacting you. Most consumers do not know what to do against a debt collector. The collector preys on the consumer ignorance. Educate yourself quickly and take action because this situation could get worse. It is nothing to be ashamed of when you have collection debt. We cannot control our life hardships. The credit card industry preys on consumer weakness and sets up a trap. Use willpower to resist them. Your mindset will change when you understand this trillion dollar industry and how it operates. Then your financial future will change. Spread the word! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about collection debt. Stop by Barbara Thompson's site where you can find out all about collection debt and what it can do for you. |