What are the worst mistakes consumers make with their credit cards?
We got in this position by making a series of smaller mistakes. Most people have been living on more than they make. We told ourselves that was OK, because we were making so much in the stock market or on our houses. People bought into the logic of the credit card companies. When they send you card after card, it’s easy to convince yourself that if they think you can handle it, you think you can handle it. But they’ve just run the numbers of how many defaults they’re willing to risk. And they’re willing to risk on you. Q: How do you know when you’re really in trouble with your credit cards? A: When you start rolling one card over to the next card, using one card to pay another. Q: How did we get in so much debt? A: It was the second or third car, or the nicer car. Or it was the bigger house we convinced ourselves we had to have because our neighbors had one. Q: How do we get out of it? A: First, assess the problem. Get all your credit card statements out and write down how much you owe
