Crdit Repair To Credit Millionaire-1

I am going to start a series of articles which will give you a kickstart to repair your bad credit and become a credit millionaire who never denied by anyone for credit.

Simply defined, credit is financial responsibility. Credit is also any way
of paying for goods and services that doesn’t require you to pay in full
when you receive them.

In today's world it is difficult to get by without good credit. The use of
credit can buy a person time and give them access to opportunities
that would otherwise elude them. For example, how many people could
afford to purchase a new home or automobile with cash, or be willing
or able to wait the time to save enough? Many have trouble saving the
down payment for those items, let alone the entire purchase price.
Furthermore, just try to rent an automobile or make an airline or hotel
reservation without a credit card.

Credit is the bridge between you and the things you want to buy.

Over the last decade, credit cards have changed the face of the global
economy. Their wide acceptance, portability and fast transaction time
have made them the preferred currency. Increasingly, companies are
allowing us to purchase almost anything with the swipe of a card and
the scrawl of a pen—sometimes with just the electronic equivalents. As
a result, credit has assumed a greatly expanded role in the lives of
individuals.

Credit—once reserved for major purchases like homes, cars and
furniture—is now used to purchase groceries, gasoline, and even the
morning coffee. From pay-at-the-pump gas stations to online shopping
and even self-checkout grocery stores; it’s becoming easier and easier
to buy using a credit card.

What started as a convenient alternative to carrying cash has
plummeted the world into a quagmire of consumer debt.

Unfortunately, it’s easy to spend next month's
earnings before you earn them. It’s now typical for
tax refund checks expected in May to be spent to
pay the debts of the previous year’s expenses.
There is an estimated

$3 trillion in total
If you don’t think that the use of credit cards
personal debt
results in more spending, consider this: in 2001,
in the US
two professors at the Massachusetts Institute of
Technology in Cambridge conducted an
experiment. The two held an auction for tickets to
a Boston Celtics basketball game. Half of the
bidders were told that the winner would have to pay for the tickets in
cash after grace time to come up with the money. The other half were
told they could use a credit card. The bids of the credit card people
were twice as high as those of the cash people.
(My Generation, Sept-Oct 2001)
It is estimated that one in every six Americans has problem credit.
Statistics show the average person carries $8,562 in credit card debt as
of 2001, up from $3,000 in 1990. There are 185 million credit card
holders carrying 1.3 billion credit cards in use in the US, if you count
store and gas cards. These users charged $1.4 trillion to their cards in
2002. There is an estimated $3 trillion in total personal debt in the US,
not to mention business debts. The largest company in the nation, the
federal government, carries a national debt of $7.2 trillion at the time of
this writing, and it is growing over $1.7 billion a day.*

Given the present debt loads, why read a book advocating becoming
ndebted $10-million or more?
Debt, inherently, is not bad, financially irresponsible, or evil. Most
millionaires wouldn’t have their wealth without incurring debt.
Debt is “good” or “bad” relative to what the debt is used to purchase.
Debt becomes bad debt when people use it to purchase consumable
goods and even necessities. Don’t use debt to live beyond your means
and buy things you really can’t afford. Examples of bad debt are
http://www.brillig.com/debt_clock/

Next time we'll discuss about good credit and bad credit.