Settle Credit Card Debts To Avoid Financial Death Of 1000 Cuts

In Credit Repair of CreditGuru (September 9, 2010 4:31 am)

You may already know what the “Death of 1000 cuts” is right? It is actually an old form of Chinese torture where they would put a bunch of small cuts all over a person’s body so they would bleed a slow death from all of the little cuts. Apparently this is a horrible way to die, bleeding slowly.

This is exactly what happens to you when you’re deep in credit card debt. The only difference is that you won’t actually die from it. Of course, you personally won’t die, however your money is bleeding out of your paycheck from all over. Credit card debt is pretty painless.

Think about when you get your credit card bill in the mail.  Chances are you’ll take a quick glance at it and it tells you a specific percentage rate of interest. You don’t think much about it. The credit card company certainly does not want you to notice simply how much that particular rate is. So you go along paying around the minimum on the balance. You don’t realize that the interest rate is slowly bleeding you out financially.

Let us take an easy example. Say for instance you have a credit card with $2,050 dollars on it and your minimum payment is $50 so you pay $50 and it thus leaves you with a balance of $2,000. Now, the credit card has a 15% rate of interest and with this interest rate, you are growing in debt faster than you are getting out of it. The 15% of $2,000 is equivalent to $300 and this $300 dollars will surely be taken away from you.

Here’s where the Death of 1000 cuts comes into play. Well, you don’t physically see the $300 dollar coming out of your wallet and you don’t feel it. But, you are bleeding money and don’t realize it. (Note: This is often why experts advise that if you’re trying to save money, only pay in cash, that way when the money is gone, you surely know it is 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 halt the bleeding money from your pocket. Sure, your credit is going to take a small hit in the short run, but you got yourself into the credit card mess in the first place. With credit card debt settlement from Indiana debt relief you get to avoid paying high rates of interest and come to a settlement with your debt that have been bleeding for a long while. So stop the financial death of 1000 cuts today, contact us for a debt relief solutions.

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