Chapter 1: Introduction -Why You Need To Know

Credit - love it or hate it - almost all of use it and most of us can’t live without it. Unfortunately, most of us also don't understand it very well and that costs us dearly in the added interest we pay and total debt we accumulate.

This book should become your best friend, and your insider guide into many areas of credit. Having a basic insider knowledge of credit is an invaluable resource for getting credit, keeping it and then getting rid of the debt it can bring as fast as possible. Plus, you’ll understand your options. Anyone uninformed, in a hurry, unwilling to ask questions or easily intimidated will never obtain the best deal for themselves. Let’s face it, nobody has a vested interest in explaining shortcuts, savings or options to you.

Understanding the ins and outs of financing is a mystery to most people. There is seldom a black or white answer and credit decisions are not mathematical equations with clear or tidy explanations. Credit decisions are as unique as the people applying, and sometimes that’s very confusing. In the time it takes just to read the next page:

• Dozens of Americans will be filing for bankruptcy.
• Hundreds are signing mortgage loans trusting, but not really knowing, what their rights or interest charges really are.
• Thousands will be buying consumer goods on credit without knowing all the facts of what they’re signing.
• Tens of thousands are charging away on their credit cards hoping, but not certain, to make more than a minimum payment next month.
• Hundreds of thousands are making payments on the purchase or lease of an automobile on terms that might have seemed a good idea at the time.
• Millions of individuals are carrying more than one credit card in their wallet and treating it as cash, with many potential pitfalls.

Every day, countless numbers of consumers make poor or uninformed credit decisions that create consequences for years to come. It is never by choice, but because they don’t know the credit tricks or pitfalls, or the right questions to ask first.

How did we get here and how do we avoid some of these expensive traps? It will be through understanding the inside rules and tips of credit - how to get it - in the least costly way. It is also through managing debt—the how to get rid of it part.