23.06.07
It’s weekend! It’s a time for freedom; it’s the time to rejoice. But it’s almost the end of the month. I can manage a couple of drinks, but I also want that Auburn Hill shirt to adorn my back in the pub. Perhaps the bright blue shade can work wonders for making way to the babe whom I found exchanging glances the last time I had been there. But my plastic can only allow another $300. Ah ok, shall not let the chance go by; I can pay back the extra amount next month.

28.06.07.
$80 left. I thought my phone bills could wait till next month. Hell, I don’t want to lose it now; please God, I don’t want to lose contact with Susanne this early. She’s supposed to confirm the first date. I shall pay the over limit charges anyway, next month.

- – - – - -

And the next month never arrived. What arrived were the bills that got heftier each passing month and our young buck had to depend on hamburgers till every penny was returned.

Impulse! It is something that dominates primarily the thoughtless and impulsive humans like our man described above, giving rise to sprees that sometimes don’t even require a proper cause. And that translates to sizeable amounts deducted from the credit cards.

What was delivered in a rather poetic fashion is a rather hairy and scary phenomenon; most of us have heard about it phrased as credit card debt. You spend from the available credit limit; spend more by paying back just the minimum amount; stretch the limit beyond and frightening figures show up with all the interest and extra charges added to the amount spent. You then pay back what you can but not the entire amount and the remaining amount shows up again after an interval. This time, it looks even more fearsome and bloats up further, beyond the manageable point. Rude awakening; you are in debt – to be precise, a credit card debt.

Apart from the happy-go-lucky mindset, it’s also the high APRs and late-payment fees that contribute to the total burden. Of course, filing for a bankruptcy can make a person steer clear out from a credit card debt; a debt settlement program can do that as well. But as said – prevention is better than cure – why let the situation arrive?

For those who are already into a credit card debt, the points mentioned below can pull them out of it; those who are in the habit of impulse spending must make a list of their priorities and assign definite amounts for definite activities to keep expenditure under control. The recovery, though a slow process, is guaranteed. Sticking to the self-made rules; however, is of paramount importance.

Those who are debtors already and gasping for getting out from a credit card debt have three choices:

• Coming to terms with the creditor and paying off the amount in installments. This shall; however, require the plastic to be returned.
• Filing for a bankruptcy helps to escape completely the credit card debt but at the cost of a lot of facilities that a citizen enjoys normally. But easy escapes worsen further the habit of wrongdoings and pave the way towards a more unsecured future. Bankruptcy is also reflected on annual credit reports for 7 long years.
• Opting for a proper credit card debt consolidation program (refinancing). Such programs usually serve as the initial step towards more financial stability financial future, granting the space through lower monthly payment amounts. However, one may need to keep the previous payment records clean, as preferred by many of the credit card debt consolidating services.

Having a good Credit Report is very important if you’re going to ask for credit. There are also other issues that determine if you can be given credit and to what extent, and they are:

the payment record: if you already have too many debts, your “credit rating” will lower (and you may think about asking for help from a debt consolidation company);
control of debt: if you’re living beyond your possibilities, it’s more difficult to get a credit, since lenders realize that you cannot control your money;
responsibility and stability are keywords to get a credit; keeping a job and living in the same home for a few years is considered a good sign.

Credit Report is usually limited to your country, so if you move to another country you will have no credit history. This may be “bad”, since with no Credit Report, you could be refused a credit card and also you may not be able to get a credit if you need it: remember that no credit history means also that there is no evidence you can repay your debts. You may want to bring evidence, so you can ask for your Credit Report from your country (in the USA you can do this once every year), and then use it to apply for credit or credit cards.