Credit stands for credibility and stature. Your credit card represents your financial capacity as gauged by your current ability to earn. However, banks are usually too generous in assigning ceiling rates for credit cards because they have to compete with other banks for their depositors. Especially in the case of people who earn regular salaries, the credit limit of credit cards often far exceeds the actual capacity of the holder to pay.
In brief, a lot of people end up with more loans to resolve, than their income, based on their regular salaries, can cover. To enable them to pay their loans, most employees cut down on their expenses, limit their luxuries and even starve off their necessities. They trim their needs down to size in order to be able to save the money they will use to defray their credit card accounts. A lot of people have to learn to live in these stark and miserable setting for years and years, in the process losing their enthusiasm for life. Little by little they are killing both their self-respect and themselves in order to pay their debts.
That kind of a solution to the problem of indebtedness does not lead to the alleviation of bad credit because while their resources remain static, their needs grow. Each time energy rates go up, for each new child they add and with every emergency that befalls their family, they have to put out more money from their pockets or borrow against their credit. And with each new loan they make, they deprive themselves more and more. Taking loans from other sources may temporarily ease the situation only to pull the knot tighter around their credit when the new loans become due.
The obviously proper way to free yourself out of a loan strangle-hold will be to create dynamic resources from which to draw your credit. Go out and make more money on your own initiative. Instead of relying on the fixed rates you get from an employer, create more credit, and become your own employer. This is not as hard as it sounds.
The success of a business doesn’t depend on the amount of capital that was put into it or the number of employees it hires. A successful entrepreneur is distinguished by having carefully studied the market for the goods and services he intends to sell. He has taken the time to learn from successful business establishments catering to the same line of necessities that he wishes to offer. He will have drawn up his own marketing scheme based on the things he has learned. He proceeds to create a business identity for his store and advertises his small business.
So get started becoming your own boss, find out what you can do or produce that will sell. Start small, but plan and work out your business systematically and enthusiastically.
Be persistent in working towards your goal of self-sufficiency. Sooner or later, you will find yourself with enough to pay off your credit card obligations and live a comfortable and respectable life as well.