Info on aviod bankruptcy credit card debt dissolveyourdebt com
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Dont Save When You Are in Debt.
 People are peculiar creatures. We don't always do whats right for us - rather, we do what feels best, and try to blank out any reasons why it may not be the most effective thing to do. Possibly that's the reason there are so many people who have both savings and debts.
Its an Issue of Psychology.
Yes, it feels better to save. Saving feels like you're building a foundation for your future, whilst paying off your debts feels like you're giving your hard cash in to a hole. That money is for the kids future, or for improving your place of residence, or whatever else - and it's in an account bringing in a good rate of interest. What could be unreasonable about that? Lots, if you owe money.
Dont Be Fooled.
There are virtually no savings accounts that will let you have interest rates as high as the ones credit cards wrest from you. Heres food for thought: if you have $10,000 in a savings account making 5% per year and $5,000 on a credit card at an interest rate of 20% per year, how much hard cash do you have? After just five years, the answer is effectively nada - what you owe would have grown to as much as $12,500, the equal amount of money that your savings are currently worth.
You may not think it at present, but it truly is a good deal better to pay off your owings. If you utilised one half of your savings to pay off that debt, youd be in a much better spot that it's really astounding. You avert five years of compound interest on the debt, but you still get to hang on to $5,000 in your savings account, pulling in interest - after five years, that's about $6,380.
If youd still rather keep your savings intact rather than using them to pay off your debts, ask yourself this simple question: is your pride worth $6,380 of your familys cash?
Think of Your Financial Well-being.
Once you have enough cash to pay off your debt, theres absolutely no logical reason to hang on to it. Debt is for people who don't have the money, and have to borrow it. Debt costs money, and savings make money - you want as much of your finances as possible to be savings, not debts. If your savings account and credit card are with the same banking company, then youre in effect paying for the privilege of borrowing your own cash from them. Why would you do that?
There are other advantages to getting rid your debt using your own savings. Youll be less distressed about your debts, and your credit statement will show that you were able to pay everything back - resulting in getting you a much better interest deal if you ever have to go into debt again.
I know it can be hard. You just have to bear in mind that any money you've saved hasnt actually been saved at all. Its money you ought to have been spending rather than making purchases with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your children's education - but always remember that whenever you use a credit card to spend that same money, youre spending away your future, plus interest. In any case, if you've got the debt, then that money has already been spent - stop denying it to yourself.
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