Debt Settlement and My Financial Well Being
One of the keys to having a peaceful and happy life is your financial well being. However, in today’s world that is not easy. Understanding the history of credit and how you got to this unhealthy financial position is key if you plan to use a debt settlement program like My Debt Free Partners.
If you take a step back in time to the 1940′s or 1950′s and talk to your grandparents , they will tell you that cash was the most important item for a family. When a family wanted to purchase a home, they would save until they had almost half of the purchase price of a home. Yes, I know the cost of a home in the 1940′s and 1950′s was much less than today. However, it shows than people would save to get what they wanted. In fact , it was not until December 1947, that the banking system issued its first prime rate figure. The first prime rate was established at 1.75%. Prime rate is the interest rate charged by banks to their most creditworthy customers. Prime rate is the base rate that bank use and then normally add to that number when lending money to customers. So, if you a business, then your rate maybe prime rate plus 2% or higher – depending on the dollar amount borrowed. On December 19,1980, the highest prime rate got was 21.50% while today’s prime rate is 3.25%.
In addition most people would save cash for their purchases. The credit card was not in our vocabulary.. It was not until 1950, that the first nationwide credit card company was started by The Diner’s Club. The concept was that this was credit and the balance would be paid in full at the end of each month. In 1966, the general purpose credit card was issued by Bank of America. This became the for runner of the nationwide general purpose credit card industry. This card was used in place of cash and if we were short each month of paying off the balance that was alright with the credit card companies. So that how the cycle of personal unsecured borrowing started and got us into this financial situation.
Did you know the following facts:
- Average American Family has 8 credit cards.
- Of the 144 million general purpose credit cards only 55 million pay off their bill each month.
- 35 million pay only the minimum payment each month
- Average credit card debt is more than $8,000
So you are not alone with this unsecured debt burden. But you can get out of debt by starting to save with a debt settlement company like My Debt Free Partners. Now is the time to cut up the credit credits and balance our personal financial situation. A debt settlement company maybe the way to easy your burden and turn your life around.
