Is This You?
By Marie Anne
@Ldyjarhead (10233)
United States
May 9, 2008 7:54am CST
[i]
In the last few weeks, there have been many stories about a consumer debt crisis. This is a major issue in our country, and it is time for consumers to take action and do what they can to help themselves. It is easy to say that there is a debt problem without actually acknowledging that you have one yourself.
Here are nine signs that you have a debt problem:
1. You have to use credit cards in order to pay for necessities such as gas and groceries.
2. Your credit card interest rates are over 20%.
3. Your unpaid credit card balance is four or five figures.
4. You have paid only the minimum balance on your credit card for the last six months.
5. You are juggling debt payments on more than three credit cards.
6. Your credit utilization ratio is over 50% (your debt is over 50% of your total credit limit) on any or all of your credit cards.
7. You feel like you are living on the edge, struggling to make minimum payments for all of your debts.
8. You have used your credit card for a cash advance to help you survive from one month to the next.
9. You have not put any cash into savings during the past 12 months.
[/i]
The rest of the article has several tips to help you manage/reduce/eliminate your credit card debt. Read more at: http://www.stretcher.com/stories/08/08may05d.cfm
I knew a lot of these tips already but some are worth repeating, and I hope they can help someone else out there.
Are you struggling with debt? Are you making any headway?
8 people like this
18 responses
@happythoughts (4109)
• United States
13 May 08
We were in a lot of debt and most of thoes things applied to us. We struggled and stressed for a long time and we are not out of credit card debt. It feels like a million pounds have been lifted off my shoulders. It was a long hard road but now we have learned our lesson and we will be a lot more concerned with where our money is going. We are still living on the budget that included all of our debt payments and now we are making thoes payments into our savingas accounts.
@Ldyjarhead (10233)
• United States
13 May 08
That is awesome! I know it's a great feeling to be totally out of debt. I've done it before, and I'll do it again.
1 person likes this
@hockeygal4ever (10021)
• United States
12 May 08
I learned the hard way when I was younger. I no longer put anything on credit cards, pay only in cash. I have zero debt at this point in my life and I'm darn happy about that!
1 person likes this
@Ldyjarhead (10233)
• United States
12 May 08
Good for you!
I've been there before and did it all on my own. Unfortunately I'm not there right now, but I've not put anything more to increase the debt in a couple of years, so now it's just a matter of climbing back out again.
1 person likes this
@winterose (39887)
• Canada
10 May 08
well all of this is about credit cards and I don't even have a credit card. I still can't pay my utilities because I do not have any money, it is a hard, hard life.
1 person likes this
@Ldyjarhead (10233)
• United States
10 May 08
Yes, its tough, and probably will get worse before it gets better.
I was going to point you to my other discussion with good sites with frugal tips, but I see you've already been there!
1 person likes this
@mbs730 (2147)
• Canada
10 May 08
The debt that I have today (other than the mortgage) is nothing compared to what I dealt with a few years ago. Not going to get into details of how I got out of it (most of it anyway) but I am grateful that I did and my credit is not too bad today either because I got myself a secured card and made small purchases on it and paid it every month since early 2006. I have enough stress as it is now, thank goodness extra credit card debt is not part of it anymore!!!! Thank goodness!
@Ldyjarhead (10233)
• United States
10 May 08
Good for you!
I had credit card debt left from a bad marriage a number of years ago and got every penny of it paid off myself by doing without and concentrating on the debt alone.
I got through it and didn't owe a penny to anyone, car payment, nothing, and then bought a house on my own. It wasn't a mansion, but it was fine for me. Then I got married again and got into the same trap with a husband that didn't understand money/debt, so I got stuck again.
Working on getting that paid down slowly but surely. Fortunately, my credit rating is still perfect.
@whittby (3072)
• United States
11 May 08
This was us a few years back. It's a horrible way to live and when your income has decreased dramatically, it's hard not to use credit to survive. You get into that downward spiral, and it feel impossible. We made some hard choices and got out of it. With the prices going up now, it's my opinion a lot of folks are going to be in debt - over the 50% level stated above. When you have fixed bills and a fixed income, some thing has to give when "necessities" cost so darn much.
1 person likes this
@Ldyjarhead (10233)
• United States
11 May 08
I know exactly what you mean and that's why it's so important to live below your means all the time so that it isn't as much of a shock when it becomes an absolute necessity.
1 person likes this
@dragon54u (31636)
• United States
10 May 08
Don't you just love stretcher.com? I get their tips and sometimes the newsletter makes its way to me but I don't know why I don't get it regularly and neither do they!
Before my divorce, we were deeply in debt and I hated it. It was for stupid things, too, for the most part. Once the settlement was made I had a downpayment on a house and some to invest for my retirement. I'm no longer in debt and only use a credit card that I pay off completely each month because it kicks back 1% towards my mortgage principle.
I have friends who are deep into credit card debt but when they moan about it and I offer advice (they ask) they are horrified that they'll have to live at or below their means, so I guess they'll stay in debt.
Sometimes it's hard not to spend money just because I want to! But I just think back to a few years ago and how much we would both have gotten from the house if not for all the debt...
1 person likes this
@Ldyjarhead (10233)
• United States
10 May 08
I think I get almost as much enjoyment in seeing just how frugal I can be, as I would spending money. My husband kinda shakes his head at me sometimes, but he knows why I do it and really does appreciate it. I guess I just sometimes come up with things that the 'normal' person wouldn't think, well, normal!
1 person likes this
@KrauseHome (36448)
• United States
10 May 08
Thanks for sharing these. I know we are not near as Bad ourselves as many others out there, and some of our financial issues have been due to Health problems I have had in my past as well. We are really trying to keep things at bay, and working more on improving things to where we can be more better off in our future.
Honestly ever person is in control of what happens to them. It is up to them what they do with what they are given and what they are doing to improve them. A lot of times things happen because we were careless, and then there are things that happen beyond our control. Yes, the Economy over all is getting bad, but if you learn how to work around things, all things can get better.
@Ldyjarhead (10233)
• United States
10 May 08
Exactly!
Some people earn less than others, so yes, they have to be even more careful and realize that they can't buy some of the things that maybe their neighbors can, but it doesn't mean you can't manage.
@sid556 (30960)
• United States
10 May 08
I am in debt and I do struggle but at least now I can see a light at the end. I consolidated and it was the best thing i have ever done. My balance is going down now at least. I very rarely charge anything anymore. I just want to get caught up and hopefully, stay that way. With prices continually going up but not my pay, i am a little nervous but so far have been hanging in there.
@Ldyjarhead (10233)
• United States
10 May 08
It's definitely had with prices rising daily, but it can be done.
@carmelanirel (20942)
• United States
9 May 08
The only thing that pertains to us is number 7 because we are in debt, just not with any credit cards..
We are the people who make too much to get help from the government and not enough to survive..There are people who make less than we do and live better than we do. I know many toes are getting stepped on here, but when I see someone who has a brand new car and they get government assistance, while we are struggling to keep our old used car on the road, and food on the table and bills paid because we make just a few dollars too much, it makes me mad..
So these tips are only for those with credit cards..Where are the tips for those who don't have credit card debt and yet they are in debt??
@Ldyjarhead (10233)
• United States
9 May 08
Oh, I can fully sympathize with you, my friend. You have no idea ...
I do have another discussion I'm going to start in a few minutes that has a good site/newsletter than you might be interested in.
Stay tuned!
@carmelanirel (20942)
• United States
28 Aug 08
Oh my, this post is so old, I can't remember if I went to your post and if I even saved the link..:( Well, thanks to my husband getting hurt on the job, our finances went down more so that we now qualify for help..But both my daughter and I have applications in everywhere, unfortunately no one is hiring..:(
@SusanShayAvon (1003)
• United States
10 May 08
No, this is definately not me. We have a light bill, water bill,phone bill, and garbage bill, and of course taxes every year!
A few years back I would get jealous when I saw people with a brand new vehicle and a brand new house and all the beautiful things to go with it all and then I realized one thing that I don't forget: I don't have all those bills to pay like they do and some of them are probably way in debt. Even if I don't have things that are brand new I am not in debt and things are paid for.
Thanks for the discussion. I am sure that it will be of help to many. Have great day.
@Ldyjarhead (10233)
• United States
10 May 08
Good for you, Susan!
If you read above, you'll see that I had a good amount of debt at one time too but worked it out on my own, then got married again and screwed that up so I'm there again.
I don't have a tremendous amount of debt and I am paying it down, but right now ANY debt is not good to me. I've done it before and I'll do it again, without any help from anyone else.
@Deea48 (1166)
• United States
13 May 08
Well I do not have any credit cards thank goodness, I do have a few outstanding debts, that I am working on right now to clear up. I use to be part owner of a Cafe, after that things got rather messy and I paid off most of my debt, but I still have one outstanding balance that I am working on, plus one other obligation that will take several more years to pay off. But once I take care of those 2 things I shall be completely debt free. I am hoping to be done in the next 2 or 3 years. I also just opened a savings account and have been stashing anything extra in there. It is not much but it is a start.
@Ldyjarhead (10233)
• United States
13 May 08
The biggest thing is to stop creating new debt, then tackle the old debt, no matter how slowly. Every bit helps!
@kulaskulasito (430)
• United States
9 May 08
Wow. What you cited is really something: insightful and all. This really helps.
I may identify myself with the seventh entry. There are times when our family would really try to meet ends. There are even worse times when we have to stretch our finances too thinly cover outstanding payments. It's really difficult. Sometimes, it really feels like we are caught in an unending cycle of debts, with a few sparks of hope to put our trusts on.
Anyway, on a lighter note, I think it helps to think that we are not alone in this struggle. I am sure we can try and find a way to map ourselves out and beyond.
Thanks for the post. You'd be sure I'd take them into careful consideration.
@Ldyjarhead (10233)
• United States
9 May 08
Yes, gone are the days when only a few people were living very frugally and most people thought they were nuts.
Now we wish we all had paid attention more!
I started another discussion that included links for good sites to help towards that end.
@hcpoirot (1562)
• Indonesia
17 May 08
I had no problem with credit card. I never had been in debt since I use it since like 6-7 years ago. My take on this is: I never use the card if I know I cannot pay the bill next month. So if I bought groceries for 30$, I know I had that kind of amount in my bank account and can pay that amount next month.
I am using credit card cause its just easier to carry and I can redeem the point into voucher and rebate money. But I do know lots of people had problem with credit card debt.
I am debt free. and I intend to keep or die trying to do that forever. 
@Ldyjarhead (10233)
• United States
17 May 08
I did that for a long time too, use my credit card like a debit card and kept track of everything I spent and paid it off when the bill came in. I didn't make a lot of money doing it that way, but every penny helps.
Then I got married ... UGH ...
@Adelida2233 (1005)
• United States
21 May 08
These are all really great tips. Somehow none of those apply to me, but I have worked really hard to get to that point. I have only used credit cards for items that I want, not that I need, or where it benefits me from using the card(cash back, etc).
I think it is getting harder for everyone to just stay above water though, with electricity and food costs through the room, some people have no choice but to pay those bills with credit cards, just exacerbating the problem.
Thanks for the 9 clues, I'm sure it will help at least 1 person recognize the issues and change.
@Ldyjarhead (10233)
• United States
21 May 08
I've been totally debt free in the past too, but unfortunately was with a spouse that didn't see things the same way so I was brought into the trap again. He is no longer in the picture, but the debt followed me and I am doing pretty good at attacking it as best I can. I WILL get there again!
My husband feels the same way I do, fortunately, and he can be as frugal as I can (well, almost!).
@terri0824 (4991)
• United States
9 May 08
Actually a few years ago I was in a real bind with my credit cards. I couldn't gain any ground with them. About a year and a half ago I joined a christian financing company, that helped me combine all my credit cards and get my interest rate down as well. Granted I had about 25,000 in credit card debt, I am currently paying $540 a month, which is less than I would be paying out if I had not seeked their help. I do see light at the end of the tunnel, I will have this debt paid off in about 2 and a half years. Which otherwise, they showed me that it would take me 44 years to pay this debt off doing it the way I was paying on my credit cards.
Granted things are tight, especially with the rising cost of everything, but I am very thankful that I have a full time job and able to get extra hours to work to help me meet my expenses. When so many people are losing their jobs and don't have enough income to meet their expenses.
@Ldyjarhead (10233)
• United States
9 May 08
Good for you!
It's a real eye opener when you can look at a debt calculator or have someone show you on paper how much that 'one little thing' can end up costing you if you put it on a credit card.
I'm glad things are looking better for you.
@above31rubies (1863)
• United States
9 May 08
I can give the "right" answer to all but one- I think our one credit card may or may not be over 20% but it's paid off almost every month anyway, so it is a non-issue.
We had two cards, but just paid off one($300 give or take) and cut it up. We will pay off the second one next month...then that one will meet the scissors, too. That one is for a Home Improvement chain store and we only got it for while we were building so I could buy what we needed on it then get the $ from the bank to pay the balance. Worked out great and I got money back on it, too!
We have about 1 1/2 months worth of income in savings and when the rebate comes in (should be today) we will be at about 2 months worth. (We're spending some of it).
That all said...I have been in the situation before where I would have said all the "wrong" answers to most of the questions above. And, I am much more apt to spend what I don't have, and I would use credit cards to do it- my husband is much more disciplined when it comes to that. I have been the cause of some stress for him when it comes to finances on many occasions.
We are currently working through the Financial Peace book by Dave Ramsey and will be implementing his plan soon to get us in an even better financial picture.
Now, I just have to write my book so I ,too, have money rolling in...haha.
@Ldyjarhead (10233)
• United States
9 May 08
Since I know you outside of myLot, I've heard a lot of this already and applaud you for how you're working with your husband and going through Dave Ramsey's plan. He's great!
Let me know when you get that book written. I want an autographed copy.
@koalatbs (2229)
• United States
16 May 08
Thanks for the information Ldyjarhead. Many people do have this ever growing problem. It is not very difficult to get into debt these days. Everybody wants what they want right here and now! I can say that unfortunately this has been me too at times. Luckily and fortunately, my husband was smart this year and he suggested that we use our tax refund to pay off our credit cards. Between the two of us, we paid off four credit cards and now only have one that we still have a balance on. We paid off all of our highest APR cards first. No sense paying such high finance charges. I am so very happy we did this and now I feel much better. I really need now not to start using them again if I do not have the money to pay them off each month.
@hcpoirot (1562)
• Indonesia
17 May 08
Thank God, I never had any problem with credit card debt. The rate interest are carzy high, over 40% a year if you had a debt with them.
My believe in using credit card is do not buy things if you do not had any money to pay for it next month. basically if I bought lest say books for 20$, I already know i had that kind of money in my account bank to spare and can pay that amount next month.
So usually I just gain points from the credit card and change them for voucher or rebate. But I do know lots of people who had problem controlling the used of credit card and get them into debt.
