The Credit Card Trap

Credit Card Debt in America

The silent epidemic sweeping the nation today is credit card debt. Americans owe over $800 billion in credit card debt, making the need for financial relief greater than ever. And that’s only credit cards; the average American household also owes mortgage debt, medical bills, student loans, and car loans. Overwhelmed consumers are struggling under this massive burden of debt, resulting in lost jobs, broken homes, and even health problems. Don’t get caught up in the credit card trap, learn the secrets of credit card companies and how to pay your way out of financial ruin.

Due to the dangerous combination of high interest rates and paying only the minimum payment each month, countless consumers are continually playing “catch-up” and have no idea how to eliminate credit card debt. Banks are flourishing from consumers’ desire to buy now and pay later. Americans try to stay optimistic in that they convince themselves they will always make more money to cover their debts, optimistic that the value of the houses we live in will continue to go up, optimistic that the economy will improve and create new jobs.

The danger of this strategy is that at some point consumers do reach a limit when they recognize that they’ve overstepped their bounds. Whether it be the day they max out all their credit cards, or the day they apply for a loan and are turned down, or the day the credit card company doubles their interest rate because of one missed payment. That’ll be the day optimism slips from our faces and we come to realize we should have cut up our credit cards the day we received them in the mail.

Stop Credit Card Offers - Opt Out Prescreen

Are you sick and tired of receiving credit card offers in the mail? You know what I mean. They arrive one or two every single day. Now there is something you can do to stop credit card applications. Next time you get one of these, look closely for a box (usually at the bottom of the page) that looks something like this:

Prescreen and Opt Out Notice

You can also opt out of credit card offers by sending a letter to the three national credit reporting agencies. But, don’t waste time. Call now. These are unsolicited offers of credit and sometimes malicious individuals intercept these offers of credit and they can open account in your name. Don’t use snail mail. Call the number.

When you call 1-888-5OPT-OUT you have the choice to opt-out for five years or opt-out permanently. If you opt-out for five years, at the end of that time the credit reporting agencies will start prescreening you again. If you opt-out permanently, you will need to complete a form that the credit reporting agencies will send in the mail.

Quiz

1. How many credit cards does the average US household have?

a) 6
b) 8
c) 12
d) 16

2. Virtually 144 million Americans have general-purpose credit cards from one of the large credit card companies. Approximately how many of them pay off their bill in full each month?

a) 55 million
b) 75 million
c) 110 million

3. About how many Americans pay only the minimum payment required each month?

a) 25 million
b) 35 million
c) 50 million

5. How much credit card debt does the average American household carry?

a) $5,800
b) $8,800
c) $12,800

6. How much interest does the average American household pay per month?

a) $235
b) $655
c) $1,100
d) $2,500

Answers

d) 16,  c) 110 million,  b) 35 million,  b) $8,800,  c) $1,100