Many more Americans are starting to rely on debt to get them by month to month. People are either losing their jobs or taking pay cuts. How are people suppose to make up the difference? CREDIT CARDS come to the rescue.
Delinquent rates are starting to increase on credit cards. That means people are not paying on their debt. First, they stopped paying their mortgages. Most people will pay on their car note because they need transportation to get to work. That means credit card companies are starting to take drastic measures to the current economic slump.
Credit card companies have started to do the following:
Revolving credit, a close approximation of credit card debt, totaled $939.6 billion in March. The Federal Reserve reported that 6.5 percent of credit card debt was at least 30 days past due in the first quarter, the highest percentage since it began tracking the number in 1991. The amount being written off was also at peak levels. Experts say 5 cents on the dollar is now the most a card company can hope to get for its past-due accounts.
Do you feel hopeless like most Americans? What is one to do? Well, I have decided not to participate in this recession. People have to learn self-control. So, I have many people ask my advice. I would advise them to visit www.daveramsey.com and follow his 7 Steps To Financial Freedom
- $1,000 to start emergency fund
- Pay off all debt using snowball effect
- 3 to 6 months of expenses in savings
- Invest 15% of household income into Roth IRAs and pre-tax retirement
- College funding for children
- Pay off home early
- Build wealth and live. Invest in mutual funds and real estate
What are you doing during this time? Are you running your real estate business on credit cards?
STOP THE INSANITY!
We have developed a system where we give people a second chance in life to rebuild. Real Estate and Beyond hosts the www.JustRentToOwn.com web site that is the portal for Phoenix Rent To Own Homes. Please visit our site for futher information. We are here to serve the community and give people hope during these dark times.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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