If you are in debt to anyone, you are a debt slave. You owe them, they own you. Does this sound harsh? Try not paying your bills and see what's harsh. If you're looking for some whitewash, soft-soaped version of these facts, then you are in the wrong spot. If you want to know the truth and want to  transform your life you're in the right place at the right time to take the right action.

I have been in debt, big debt. I have lost my house, my cars, my self-esteem and more. I have made millions for me and my clients only to see it all go away in a flash because I could not control my credit card spending. I kept counting on the fact that "tomorrow would be better than today," in terms of making more money. Well, that didn't exactly work out.

Now the reality of my life is better than the dream and I want you to have that, too. But first, you have to understand how you got into debt on know that the cards are stacked against you at almost every turn. So if you are $1000 in debt, $5000 in debt, or even $10,000, or more in debt you had the courage to come to this website, congratulations, that's a great first action step.

Many people I meet want to know how everyone gets into debt.  Are they out buying furs and new cars?  No, no quite.  There are five main reasons people become debt slaves which might surprise you, but I'm willing to bet one or more of these top five are part of your situation, too.

1. They spend money they don't have (keeping up with the Jones')
2. The have Medical Emergencies
3. There is a Divorce
4. There is a Death in the Family
5. There is a Loss of Job

Let's look at number one, spending money you don't have.  Just two generations ago, it was almost impossible for our grandparents to spend more than they had and the same holds true for our parents.  That's because most banking was done locally.  The bankers knew our parents and grandparents and the banks would not loan them money they thought was at risk. 

Today, the lion's share of credit cards are handled by national banks, who never see you and don't really care about you.  Even in these turbulent times, if you can fog a mirror, you can get a credit card.  Without the personal help from a banker that cares about you, we have, in essence, all been made President and CEO of our own private banks.  We've been told that we can "loan" ourselves untold thousands of dollars and that its okay to pay it back, “whenever.” It doesn't matter if you go deeper into debt.  Just pay the minimum, right?

So how do people spend more than they earn?  In my experience there are two main ways this happens.  One, you voluntarily spend it (how is that big screen TV by the way?) or something catastrophic happens (sickness, death, etc.).  We'll look at the catastrophes in a minute.  For now, let's stay on the topic of voluntary debt slavery. 

Most people can avoid credit card debt, but choose not to.  We all are marketed umpteen millions of times a day and we’re all programmed by the media, the Rockefellers, the banks, and others to make us want to have the best and to treat ourselves generously.  Well, when you spend more than you make, it's a problem no matter how it happened.

Here's the key.  It all starts out a little at a time and you stretch your salary a little further each week to help pay for "the nice things" we all like to have.  Add to this excessive credit card interest rates and late fee charges and all of a sudden these salary-stretcher ideas of yours create the debt-slavery problem; You start having difficulty keeping up with all of your  important expenses, like rent, mortgage, food, clothes, electricity, etc. without spending more on credit every month.

Many people use credit when they don't have the cash available to buy something they want, (not need) and don't take the time to consider how long it will take to pay off that impulse purchase. When I wrote this it would take you 70 months, or almost 6 years to pay off a credit card bill of just $1000 at 12% interest (which is low) and you made the minimum payment of just $20 a month.  You would also pay $396 in interest.  Does this sound like a good investment to you?

When you start down the debt slavery spiral you really don't sense that you are in hot water until it's too late. One way this happens is when you fall into the "it's only" trap.  "It's only $20 a month.  It's only $15 a month," you know what I mean, right?  Pretty soon you find that all of these "it's only's" have you in debt way over your head and now you become a debt slave.

So-Called "retail therapy" is another reason people spend more than they make and often times find themselves overwhelmed with debt. There are some studies that indicate people who are unhappy about something can make themselves feel better by shopping. Many times the people who don't have as much money as they would like find themselves at the mall with their credit cards so they can, "feel like a consumer," or to "forget their troubles." 

If this is you, you need to pay attention right now.  From now on, keep just one card in your purse or wallet, that way you cannot spend more than you have.  It is your choice, control your debt, or be a debt slave.  What do you want to do?

Spending more than you make on purpose is your choice and only you can correct this pattern.  To stop this from happening to you, click here to order the Dump Debt Grow Wealth System.  

Now let's take a look at issue number two, Medical Emergencies. Emergencies are a common thread in financial disasters and debt slavery. One trip to the emergency room, even if you have insurance can put you in debt for years.

As the term indicates, emergencies are not planned, but should be planned for. Experts agree that you should have at least three months (better to have six months) of savings that can stave off any emergency or disaster. Right now Americans save at an almost all-time low, about -0%. Yes, that number is right. Overall we save about zero. Since the financial and bank collapse, people have saved more, but it is not nearly enough. What that means is a lot of people have no safety net and are just three paychecks away from total financial collapse all the time.

Number three, Divorce. This is another one of the main reasons people declare bankruptcy and again, it is (usually) not planned or planned for. While it may be very hard to do, if there is any way to keep the divorce amicable, it will cost you less, put les stress on the situation, and you will not have to use credit cards to pull you out of a hole that can be so deep, you may never see the light of day again. If you have some of your own savings set aside and are not deep in credit card debt, you will be better off.

Number Four, a Death in the Family. This, by far is the most dramatic reason for going into debt. What can you do if your spouse or main source of support dies? The best plan is to make sure that there is insurance on all members of the family and that you have a plan for this situation. Having no money and going into debt at a time like this makes the situation very unbearable.

Number Five, Loss of a Job. This happens every day in every community in America and based on statistics, you will be fired, outsourced, downsized, or choose to leave the job you have right now within the next two - five years. Each month tens-of-thousands of Americans are losing their jobs. What will you do when and if this happens? Start planning now and you'll have control over this situation and not allow the situation to have control over you.

I have known people who have little or no credit and they think they have to have multiple credit cards to build their credit rating. If you have no credit, you are known in the business as a "ghost." That doesn't mean you are not trustworthy, it just means you don’t have a credit rating, or have not had credit long enough to have a rating. In any event, you do not need several credit cards to establish a credit rating and I highly recommend that you only have one or two cards at most at any one time. The more cards you have, the more you will spend and the more likely it will be that you will become a debt slave in my experience.

The Problem: Credit cards make borrowing and paying money back easy. They also make going into deep debt easy. First, you need to know something about who actually gives you credit and your credit cards. American Express, Visa, MasterCard, etc., do not give you credit cards; banks or other credit lenders do. Your bank gives you a credit card, and establishes a credit limit for you they think is one that you can manage.

You then spend money and pay later, over time - if you are like most people. Every time you use a credit card, you are taking out a loan and the bank trusts you to pay off this loan. One of the reasons that this type of debt is called "revolving debt" is because every month you are given a new loan for the total amount owed on each card. In other words, you do not have a certain "term" or time limit on the loan, so it therefore revolves. That's also why your interest rates can go up or down every month.

The Debt Spiral: Many people use their credits cards to buy many things; food, clothes, school supplies, etc. If you pay your bill in total to the credit card company every month, then you have the system figured out (use their money for 30 days, interest-free).

If you buy something big or always use the card, and pay the total balance off in two or three months, you're still okay because the amount of interest is negligible.

Here is the problem millions of people face; If you make no payment, or pay only the minimum amount due, and your total debt increases every month, then you are already in The Debt Spiral and it is very hard to get out of it. In this case, I am being foolish. If this sounds like you, you must take action today to reverse this trend or, like a toothache, it will only get worse.

It's Not All Your Fault: There are many way to get into debt, but an important thing to remember is that you are in control, even though the system is rigged against you. You are bombarded with advertising and your children (and you) are under a massive amount of peer pressure to have the best, or the biggest. It can be hard to say, "No."

Take a moment and decide to get out of debt and stay out of debt… forever. Click here to order the Dump Debt Grow Wealth System.

I am yours in financial success,

Randall

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