Thursday 1 August 2019

Um . . . Thanks?

So, apparently the province of Quebec has put new rules for credit cards into effect today. 

As I understand it, it forces them to set the minimum payment at 2% (of the outstanding balance) for existing credit cards and 5% for new ones.

Yeah . . . thanks . . . how about lowering those extortionarily high interest rates? (crickets chirping).

Yet, the real problem is that you will never get out of debt by paying the minimum payments, even people paying the minimum on those credit cards know this (or should).

Credit cards are a fine tool, they make paying for things easier, handy for paying for things online, paying for a large purchase (such as paying for my truck insurance). 

And yes, they are handy for emergency cash when needed, but for this use they should be seen as friendly and as desirable as going to a loan shark.

I have said it before, and I will keep saying it, getting out of debt is as simple as getting into debt . . . control your spending.

We get too much focussed on the here and now, the “survival mode” mentality of where we think that we just have to do this for now and things will be fine in a bit.

Yet, we never change what we are doing yet still hope that things will somehow get better. How is that? This is a delusion that people let themselves believe.

If you want to get out of debt you have to downgrade your lifestyle in order to upgrade your cash flow. There are many ways to do this, you don’t have to live in an RV.

If you master your cash flow, you will be able to pay down debt until you are debt free. I have done it.

So, sure pay a little more than your minimum payments if that is all that you can do. 

It will help, but for a real solution to large fiscal problems you may need a radical solution (that is: legal, ethical and moral).

As always: Keep your head up, your attitude positive, and keep moving forward!

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