Settle your Credit Card Debts, Stop the Financial Death of 1000 cuts
You know what the “Death of 1000 cuts” is right? It’s an old form of Chinese torture where they would put a bunch of tiny cuts all over a person so they would bleed a slow death from all of the little cuts. This is a horrible way to die, bleeding slowly.
This is exactly what happens to you when you are deep in credit card debt. The only difference is that you won’t actually die from it. You personally won’t die, but your money is bleeding out of your paycheck from all over. Credit card debt is seemingly painless.
Think about when you get your credit card statement in the mail. You might take a quick glance at it and it shows you a certain percentage interest rate. You don’t think much about it. The credit card company certainly does not want you to notice just how much that certain rate is. So you go along paying around the minimum on the balance. You don’t realize that that interest rate is slowly bleeding you out financially.
Let’s take an easy example. Say you have a credit card with $2,050 dollars on it. Your minimum payment is $50 so you pay $50 and it leaves you with a balance of $2,000. The problem is that your interest rate on this card is 15%. So you are growing in debt faster than you are getting out of it. 15% of $2,000 is $300. Yep. $300 dollars of your money being taken away from you.
Here is where the Death of 1000 cuts comes in. You don’t physically see the $300 coming out of your purse or wallet. You essentially don’t feel it. Yet, you are bleeding money and don’t realize it. (NOTE: this is often why experts advise that if you are trying to save money, only pay in cash, that way when the money is gone, you physically know it’s gone.)
The Credit Card Debt Death of 1000 cuts hit home with me pretty hard the other day. I was eating lunch with a decent friend of mine. We hadn’t really ever talked about money before but he knew I did debt settlement for a living. He was asking me how our debt settlement program worked. I explained the debt relief program and then I asked him the real question. How much credit card debt do you have? He told me $40,000. Now I know people with more credit card debt then this. If you say his average interest rate is 10% that is $4,000 a year! (they are actually higher)
Now this isn’t the part that got to me. The part that got to me was that a week later went to lunch at our usual spot. This time my friend wanted to show me his new car. I couldn’t believe it. I’m not suggesting don’t have a car, but he clearly didn’t see just how much interest was eating at him because it wasn’t visible. His credit card debt was bleeding him but he didn’t feel it enough to realize that making car payments was only adding to his problem.
Credit card debt settlement from Indiana debt relief and virginia debt relief is a great option to stop the bleeding money from your wallet. Sure, your credit is going to take a small hit in the short run. However, you got yourself into the credit card mess in the first place. With credit card debt settlement from Indiana debt relief you get to stop paying high interest and come to a settlement with your debt that has been bleeding for a long while. Stop the financial death of 1000 cuts, contact us about your debt relief options.