Credit Card Debt -- Tricks Banks Use to Keep You in Debt Credit card debt has a grip on you. You didn't start out in life up to your eyeballs in payment envelopes. Yet, like millions of others, you wound up with a pile of monthly bills stacked up on your kitchen table. Credit card debt didn't accumulate because you wanted to spend money more quickly than your Congressman. There are good reasons for your current situation. Here are some reasons so many people are living in financial quicksand, struggling to get one foot out while the other sinks yet deeper. You will probably recognize some of these sales pitches. Indeed, they are all sales pitches for increasing your debt. Bankers say: "Credit card debt is good for you." As you make timely payments, you will be building a credit history that represents your financial "reputation." Lenders will use information about how you handle debt to decide to loan you money for a mortgage or a car. Your timely payments are noted on your credit report. Consistent payments mean you are a good risk for future loans because you pay back your current loans. Your credit payments also bring more money into the bank. This makes the bank president very happy. Credit cards are easy to get. Each week, banks send thousands of "pre-approved" credit card solicitations. Nearly 3 billion solicitations are sent out each year to consumers. Currently, less than 1% of the applications are returned by those seeking additional credit. Who gets these pre-approved applications? Credit card issuers select people who already have credit cards and make timely payments. These people are good credit risks. And, they are likely to make minimum payments on these additional cards. Bank managers grin just thinking of people struggling with yet another credit card charged right up to the credit limit. College students need to establish their credit worthiness. Just imagine young college students, some with part time jobs, grasping their first credit card. They are eager to use it to buy all the things they need so much. There is intense competition to provide credit cards to students. Some banks pay highly to be an approved supplier of credit to college students. Cards are issued to students without a job. Gifts such as T-shirts, pizza discounts, backpacks are provided to those who sign up. And college students aren't any smarter about credit than you. One out of five college students accumulate $10,000 or more in credit card debt by graduation. Once college students are hooked on credit, they will usually be loyal to the credit card issuer for life. Nothing makes a blue suited bank executive happier than a new convert to the life of eternal debt. Teens and pre-teens need to learn about credit. Brand loyalty means enormous profits to a credit card issuer. The earlier this loyalty can be established, the better. Some 8 year olds now have their very own credit cards. Banks offer teens their very own credit card, with their parents authorization. Some lending institutions even work with the schools to help students learn to use credit. Buy now. Sale ends Sunday. Of course, there are the never ending commercials. TV, radio, and newspapers carry ads meant to entice you to buy now. Our once in a lifetime sale is almost over. You better buy now, or you'll lose out. There are a hundred sales pitches. They appeal to your emotions and build desire for whatever product you are interested in. Your Escape from Expanding Debt Next, read some money saving tips that can help you spend money more wisely. And speaking of wisdom. You must take steps to reduce the high rate of interest you are paying on your debt. A consolidation loan might be the right solution for you. One of the best things to do to help reduce credit card debt is to reduce overall expenses. One expense most people can easily reduce is their long distance bills. The big telephone companies charge high rates. Now you can take advantage of lower rates. Click here.   Back to the main page of Credit Card Debt Reduction Help Copyright © 2001-2006 by Robert Sherman All rights reserved.