Mom puts her Family $135,000 in Debt

This is a story that cuts to the core of the major problems of debt in the US. There are a number of people who believe credit card debt will take care of itself. NO! Credit card debt can stay with you for a very long time and may even cause some individuals to file bankruptcy. Compounding bad decision after bad decision can lead to an outcome just like this mother of 6 who couldn't stop spending.

The Oprah show did a special on money issues and presented the TV audience with this mother of 6, Felice, and her husband, Phil. Her bad decisions of spending led her to lie about the amount of debt she was accumulating.

"Felice spends nearly $60 a week on tanning and manicures. 'I take care of the bills, so my husband doesn't realize how much money I've spent on hair and nails and extensions. I know I've probably spent $3-4,000 just on the cost of the extensions in the last two years.'"

Credit debt can lead to larger, life changing problems if people are not careful. Being smart about spending is definitely a first step towards getting your debt in control. Don't get wrapped up in uncontrollable monthly payments. Felice offers a good example of uncontrollable monthly payments.

"Phil and Felice really have $135,000 in credit card debt. They also pay $1,700 a month for their three cars. Their two mortgages total $658,000. Because their mortgage is a negative amortized loan, the mortgage will increase by $20,000 every year."

The point is to keep your spending in control, keep your monthly payment amount in control and keep yourself in control of your financial future.

If you feel that your debt is getting out of control, don't hesitate to Consolidate Your Debt. It is a good start to getting your finances back on track.

Read the Complete Story from the Oprah Website