Home  >>  Financial Planning  >>  Individual Planning  >>  Financial Planning D...  >>  Obstacles in your wa...  >>  Credit Card Debt

Credit Card Debt

Credit Trap!!!!!!

This is probably the single worst enemy to the American public!

Your VISA, MASTERCARD, OR DISCOVER CARD!

If you just review the Law of 72 in reverse you can see that if your credit card balance is $10,000 in 1996, if you did not make any payments or charge anything your balance would be $20,000 in just 4.8 years!

So, at all costs, build some liquid reserves you can fall back on and rip up every credit card you have, unless you are one of those disciplined people I meet twice per year that never carries a balance past one month.

If this is totally impossible, rip up all your cards except the one with the lowest balance.

Other options include getting a checking account that has a MasterCard or Visa Debit card, putting $500 per month into the account, and charging to your hearts content but if the card is declined, that's it for the month.

Whatever you do, shoot the cards. They are eating your networth like pack rats!!!!