LitaWrites (real_lawyer) wrote,
LitaWrites
real_lawyer

Another Day Older, And Deeper In Debt…

As you will recall, I am embarking on a week free of “Bubble Mongering”, but I never promised a week without badgering!  So today, I wanted to discuss the problem of credit card debt, spurred by a stat I saw on TV. For every $100 earned, I learned, Americans spend $101. 

About 14 % of all Americans have more than 10 credit cards, and a like percentage uses at least half their available credit (reducing the average credit score by 29 points).

I had clients who were habitual credit card maxxers.  They became serial re-financiers to wipe out their credit debt each time they reached their available limits.  They knew they were in a sort of Russian roulette, never really certain when they’d receive that fatal blow that buried them under their 21% credit card debt because they’d run out of life-saving plasma (equity in their home).
 
The time arrived, and a quick conversation with them about a referral to a bankruptcy attorney revealed they were carrying $18,000 of credit card debt at 21% or over, another $10,000 of debt under 12%, and have mortgaged 115% of their home’s March, 2007 appraised value.  I gave them both the attorney’s information and the phone number number for a credit counseling service, but my client quickly cut me off about that with a curt “Oh, you gave us that service a few times over the years.”

I have personally taught old dogs new tricks.  I hope that we can all collectively learn anew.
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