Don't Let The Holidays Detour You From Your Financial Goals

Written by James H. Dimmitt


Do you dread going to your mailbox and finding yet another credit card bill? Do you find yourself worrying about how you’ll pay your bills from one month torepparttar next ?

Guess what ? You’re not alone. Almost halfrepparttar 112600 households in America report having difficulty paying their minimum monthly payments on credit card bills and other debts.

We have become a nation hooked on credit. Recent government statistics on American debt show that:

~ Over 40% of US families spend more than they earn. ~ The typical U.S. household has an average credit-card balance of $8,940. ~ Credit card debt is up 36% from just 5 years ago. ~ 92% of U.S. family disposable income is spent on paying debts, up from 65% in 1975.

How did we get ourselves in such a mess ? According to Dayana Yochim, a journalist and teacher for The Motley Fool, “It's not just that we're borrowing more money and paying it back more slowly; it's that we're spending money we used to consider off-limits.”

Yochim points torepparttar 112601 popularity of home equity loans and lines of credit as just one example. “Home equity loans are more popular than ever as people borrow against their home to feed their spending binge.”

According to a BusinessWeek report, total household debt topped 100% of disposable annual income last year forrepparttar 112602 first time ever.

“The problem with credit for many people is that it’s just too easy to get into a rut with bad spending habits,“ says Rich Vorland of Consumer Credit Counseling. “Credit gives everyonerepparttar 112603 instant gratification of getting something they want right now. We don’t have to save up for it. We don’t have think of how we’ll pay for it untilrepparttar 112604 bill arrives.”

TOP 10 WAYS TO AVOID DEBT DURING THE HOLIDAYS

Written by Steven Taieb


The Debt Trap: How Your Life Choices Impact on Your Financial Future

1. NEVER use your credit card if you don’t haverepparttar money inrepparttar 112599 bank.

2. WRITE one check in advance forrepparttar 112600 money you allocate for gifts, and write a list of what you purchase andrepparttar 112601 cost of each purchase without exceedingrepparttar 112602 budget.

3. IF you can’t afford to buy gifts, bake or hand make crafts that don’t throw you into debt.

4. DON”T rely on anticipated bonus’s or raises when making spending decisions.

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