How terrible is it to have credit card debt?

I'm a 24 year old single mom of one....I do not live above my means in any way yet we usually don't even make it paycheck to paycheck. It is so frustrating not being able to just do....needing an oil change is a struggle nevermind my son wanting to do tae kwon do. I see so many people that have so much more but make around the same amount of $ and it makes me want to just go ahead and build some credit card debt. I'll die owing somebody something, right? I'm not the type of person that would splurge on nonesense, I would use it when I can't make it to pay daycare instead of going to my mom is trying to prepare for retirement next year. I feel like I will never get ahead otherwise....is it really that terrible to have some credit card debt at a young age. Any advice would be most appreciated.

How terrible is it to have credit card debt?
The best way to consolidate your credit card debts or any other high interest debts is using a home equity loan. Of cause, you need to own a home in order to apply for a home equity loan. Home equity is ideal for you to consolidate your credit card debts because the interest is much lower interest rate than credit card and other unsecured loan. And the best part is it normaly have different terms or repayment periods for you to choose from. The longer the repayment terms, the lower the monthly payment is. If your current financial is tight, you could choose the longer repayment term and pay more when you are at better financial situation.





With a home equity loan, your equity works as the collateral. If your home equity is $50,000, you could obtain a loan up to this amount. You could use this home equity loan to clear up all your credit card balances plus other loans; and you just need to focus on making a single monthly payment to your home equity loan.





Some Caution On Using Home Equity Loan To Consolidate Your Debts





Although consolidate all your credit card debts with a home equity loan is an ideal way to settle your high interest rate outstanding debt. You should use the fund wise, borrow just what need to clear your consolidated debts and avoid accumulating new debts while working on clearing your home equity loan. Failure to repay a home equity loan will result in losing your home. Read more from: http://www.credit-card-gallery.com/conso...
Reply:Ask yourself this question every time you think about racking up debt of any kind: if I die tomorrow, how will my family pay this down? Credit cards don't always cancel debt upon death. My grandfather found that out the hard way when his wife died and left him with $30,000 to pay back.





Create a budget and prioritize. 10 percent of every (and i mean every) paycheck should go into a savings account for rainy days. my rainy day savings account saved my butt last week when i had car trouble. you already know that you have to pay rent, utilities, child care, buy groceries and do regular maintenance on your car, including gas. rent and groceries are most important. after that, heat, water and electricity. you can control how much of these you use, but they are necessary. if you have to cut a bill, consider the cable, cell phone or the house phone. i cut caller id and some of the long distance on my house phone and saved 15 bucks. that's half a tank of gas.





who cares what other people have and are doing. your kid will remember your resourcefullness more than what he has. believe me. i was raised by a single mom living paycheck to paycheck. because i watched her make hard, but right choices, i have no debt whatsoever, have a good sized savings account and excellent credit. that matters more than 'stuff.'





good luck.
Reply:really %26amp; truely i would say try %26amp; stay away from cc debt. it's very easy to run the cc bills up and not so easy to pay them off. i would only finance big ticket items. no oil changes or extra circular activities. something thats really important....like maybe dental work....or whatever...i'm just speaking from experience.....when i get out of debt, i will try my best not to get back in...it's hard not to spend...i love to shop but really it's for the best to stay far away from cc debt
Reply:Go to SuzeOrman.com





Also, go into debt... to invest the money. What I mean is go ahead and take out students loan. You are 24. So if you can, get an associate or a bachelor. That's the best way to increase your earnings.
Reply:Stay out of debt. Have a budget, name every dollar BEFORE the beginning of the month, so you know where it's going.





I had a single mom, I did not get to take Tae kwon do and today I am a VP at a bank. Your kids will make it without all the splurging.





Live simply and ignore the broke people. Contact the YMCA for reduced membership fees.
Reply:Please don't take this as a personal attack. If you usually don't make it paycheck to paycheck, you ARE living above your means.





In your case, it does not appear that you are spending too much. Your income appears to be insufficient. The advise in the first answer will help some. If you were to call Dave Ramsey, I suspect he would say you need to find a way to increase your income.
Reply:Of course it is terrible to have it a young age because the bills are starting to annoy me. I am one of those people who bought things that I did not need on credit and I wished that my mail carrier would stop mailing the bills to me. I learned my lesson. So, it is best to buy everything in CASH unless it is a very expensive product that makes you uncomfortable to carry that much cash around. That is when I suggest you use a credit card.
Reply:Credit card debt seems to multiply because if you're struggling to get by now, that would be an additional bill. And if you can't pay your credit card bill then that will affect your credit rating.





My suggestion to you would be to see if you qualify for help through your Dept of Human Services to get assistance paying for your day care expenses. I have a friend who has a son and was working but only about $7 an hour and she was finally able to get some assistance for her son's daycare expenses. It might be alittle tedious, but worth while to lighten your expenses.
Reply:It can actually help your credit score and build credit. In your situation I would only use it as a short term fix and try and pay it off as quickly as possible. Never spend more then 30% of what your credit limit is. If you have a 1,000 credit line... dont go over 300 unless you can pay it off in a week. Never keep more then 30% of your credit used. And never more then you can afford.
Reply:You don't get ahead by taking on debt. Debt drains away future income, and saps your ability to save for retirement or anything else. Once you start to carry a credit card balance from month to month, you get hit by interest charges, and are vulnerable to increases in the interest rate. For a parade of horribles that credit card companies do, see the first webpage listed below.





You're doing the right thing to ask whether taking on debt is a good idea. At least you're thinking about it. Some people just plunge ahead and end up in a financial mess. Keep your head above the waves--avoid debt. Good luck.
Reply:I always think of credit card debt as a short-term expense to help finance my needs until I can pay it off. I will stress the expense part, because paying interest on a credit card is cash that is not buying me the things that I need (groceries, car note, and rent). If you are on such a tight budget, and have avoided credit card debt, I salute you! That is an accomplishment in it self.





A thing to remember about credit cards is that are unsecured loans that are extended to you every time you use them. Moreover, credit card companies can and do raise their monthly minimum payment the longer you carry a balance. This is something that can get anyone into trouble that is on a tight budget.





It is so very difficult to say one way or another if having credit card debt is beneficial or detrimental to your future because individual circumstances can vary so much. I would say that if you use credit card debt with a realistic plan to pay it off as soon as you can, then proceed with caution. On the other hand, if you use debt as a way to just get by with no end in sight, then I will see you in bankruptcy court. :-)





Again, think of credit cards as short-term solutions. You eventually have to start saving someday and credit card interest is money that you are not investing for your future.