Real Estate Investment:To avoid future foreclosures, Americans have to be better with their credit cards

Article Summary:

Article Content:

Credit card companies have been getting a lot of press lately. None of it has been good.

Of course, credit card companies are like used-car salesmen, lawyers and reporters: No one likes them when times are good. When times are bad? We hate these folks.

Seems that Pres. Barack Obama isn’t a big fine of the credit card companies, either. He’s been pressing for credit card reform pretty heavy, decrying the soaring interest rates and fine print regarding exorbitant late fees and penalties for which the companies are known.

CBS News reported on the major reform bill that passed the U.S. Senate on Tuesday of this week. The reform bill supposedly clamps down on arbitrary fee and interest rates hikes.

This is good, because credit card debt is killing the average U.S. family. The average credit card debt among U.S. families in 2007 hit ,300.

That’s important when it comes to housing. According to RealtyTrac, an online provider of housing foreclosure information, residential foreclosures reached record levels in April. Think part of this is because so many homeowners are drowning in so much debt that they can’t even think about paying their mortgage loans?

Maybe this recession has taught us all an important lesson: Credit is great. It’s important, and is a necessity in today’s world. But it can also prove devastating to families when abused. Just look at those soaring foreclosure numbers to see just how devastating.

real estate services