Before credit cards came into existence (and, yes, there was a world without credit cards at one time) it was a lot more difficult for people to get in over their heads financially. It happened, of course, but not with nearly the frequency that it happens in the credit card laden world of today.

People really didn't have the ability in the form of a credit card to get so deeply in debt that they couldnt get out. Loans had to be approved by other living people. Credit histories were checked and employment was verified before credit was extended.

Credit cards have made getting credit very, very easy, and that easy credit is getting a lot of people into serious financial difficulty. If a person has a social security number, they can get a credit card. In fact, I'm not certain that even a social security number is necessary — maybe just a mailing address works. A man in California got a credit card for his dog and used nine zeros as a social security number.

Having a credit card is not a badge of honor. It doesn't assure the world that a person is financially responsible and that they pay their debts on time and in full each month.

Managing debt means being financially responsible. We live in a world where instant gratification is the expected norm. See it, want it, buy it…with a credit card. The problem is that it wasn't bought; it was charged, and the bill will come due. Buy it now, worry about paying for it later seems to be the mantra of the nation today.

Credit cards are the vehicle that is used to drive into deep and unrelenting debt. That easy credit is the root cause of second, third, and final notices filling mailboxes, and it provides jobs for debt collectors who will be calling day and night.

Tags: personal financial problems, managing personal debt, personal loans, mortgage, consolidate your debt, good debt management, managing mortgage

Planning for debt is one of the most important aspects of sound overall financial planning. A debt agreement should never be entered into lightly and certainly not before plenty of thought has been put into it.

Most of the time, people will consider taking on major debt fairly carefully. There are even some safeguards in place to assure that is the case.

For example, before you are granted a mortgage to purchase a home, your financial situation is investigated. The lending institution ascertains that your income is stable and that you have the wherewithal to make the mortgage payments. Before you can get a loan to buy a car, a motorcycle, or a boat, the lending institution will do a credit check to be sure that you can afford it.

For all major purchases that you make through lending institutions for which you will supply collateral and sign contracts, the safeguard for the lending institution as well as for you is that your financial situation is assessed by people who are experts in the field of credit.

Credit cards are, however, a different animal. Some people do not view credit cards as loans or as part of their overall debt management program, and that is what gets a lot of them into financial hot water.

Credit cards ARE loans…they are debts. Granted, they are unsecured debt, but they are debt nevertheless.

Anybody who has any means of income whatsoever can have a credit card issued to them. There is no safety net. Your credit isn't checked to ascertain that you can afford to carry as much debt as your credit card limit extends.

When you are determining whether you can accept responsibility for repaying a debt, you need to remember that the balance on a credit card is a debt. The monthly minimum payment is not the debt.

Tags: personal financial problems, debt relief, , consolidate your debt, credit score, managing mortgage, credit rating

Bankruptcy is a last resort! It should never even be considered as an option until all other options of debt relief have been completely exhausted — at least not for us ordinary mortals.

If you do find yourself in the position of having to declare bankruptcy, you will be in some pretty good company. Donald Trump, Burt Reynolds, Walt Disney, Wayne Newton, George Jones, MC Hammer, and Johnny Unitas are just a few of the very famous people who have had to declare bankruptcy and then been able to get on with their lives.

It isn't the end of the world. You will survive!

Bankruptcy laws have changed. There was a time when filing bankruptcy erased all debts but that really is no longer the case. You need a lawyer to guide you through the bankruptcy process. Some of your assets are protected even today, and without a good lawyer in your corner, you can be fooled into thinking that they are not protected.

Don't take the chance. If you must file for bankruptcy, get a good bankruptcy lawyer in your corner so that you come out on the other side in as good shape as possible.

Don't listen to hearsay and rumors. You need facts…good concrete information. A lawyer who specializes in bankruptcy can get you the very best settlements that are possible. The harassing phone calls will stop immediately.

Yes, you will lose most of your assets through bankruptcy, but you will be getting a clean slate. Contrary to popular opinion, it is sometimes easier to get loans and credit cards after bankruptcy than it was prior to the bankruptcy.

You will have to start over, so to speak, after bankruptcy, but that doesn't necessarily mean starting from zero. You can retain many of your assets if you have the right legal counsel.

Tags: credit score, consolidate your debt, personal loans, credit rating, , credit debt, debt management