Airman & Family Readiness Center offers easy debt solutions Published July 24, 2008 By Emily Smith 43rd Airlift Wing Public Affairs POPE AIR FORCE BASE, N.C. -- There are approximately 300 million people living in the United States and, according to Visa USA and MasterCard International, there are 984 million bank issued Visa and MasterCard credit card accounts to date. Do the math, and you'll come to find that each person in the United States owns nearly 4 credit cards with just the Visa and MasterCard logos alone. Weed out people not old enough to own credit cards coupled with other card brands and that statistic gets even scarier. Credit card and debt problems are not just reserved for certain classes or groups of people; Forty percent of American families spend more than they earn. Pope Airmen and their families are privy to these problems in the same ways as everyone else. Howard Hill, director of the Airman and Family Readiness Center, says that there are as many reasons why Airmen are in debt as there are Airmen. "One of the main reasons is 'instant gratification' and 'I want it now' syndrome," Mr. Hill said. "Credit cards are easy to get and the debt is hard to get rid of. Not paying the card off at the end of the month means even more debt (in the form of interest on the unpaid balance). Tack on late fees and high interest rates and it's a combination to ensure debt well into the future." There are certain trends that Mr. Hill sees among Airmen. "Guys will pay over $150 for a pair of sneakers because this particular basketball star says it's the one he wears," Mr. Hill said. "Also, last year a friend of mine came in with a brand new iPhone that was able to hold a few thousand songs and pictures. Just recently, the new iPhone-G came out and I know she is going to 'need' this one too, even though the end result is higher monthly usage charges. This means more debt." Luckily, these problems do not have to persist. The staff at the Airman & Family Readiness Center have formulated a budgeting checklist aimed to help even the most owing Airmen get out of debt: -Start with a budget and spending plan. No matter how hard it is, stick to it -Be a 'cut-up'. Cut up some of your credit cards so that you won't be tempted to use them until the debt is paid off. -"Power pay" your debt. Power pay is a method of lining up your bills according to the largest amount owed or highest interest rates charged and paying down the debt that way. These are just a few suggestions for ways to minimize your debt. To attend a financial workshop or to set up an appointment to talk with an advisor, call Howard Hill at the Airman and Family Readiness Center at 394-2538 or e-mail Howard.Hill-02@pope.af.mil. (Source: Federal Reserve Bank)