Everyone has credit problems…right?
Credit problems in the United States are reaching epidemic proportions. In going from the financial excesses of the 80’s to the turbulent 90’s, many good people have experienced the horrors of not having enough cash to meet all their monthly obligations. ‘There are the credit card bills, utility bills, car payments, house payments, etc. that all need to be paid every month. And in choosing how to make all these payments, it is all too common that some payments fall behind and subsequently damaging your good credit rating. And when you add in all the credit problems that are the result of data entry and reporting errors, computer errors and outright fraud, the number of people who are affected by “bad” credit grows tremendously. In fact, if bad credit were a disease, it is such a large problem that it would be labeled as an epidemic.
It is impossible to approach a group of people nowadays and not find someone with some credit problems. If I were to venture a guess based on conversations with my fellow Americans, I would say that over 25% of all the people know they have some sort of a credit problem. And there is another 20% who are unaware that they have some sort of a credit problem. Like many financial planning matters, it is very easy to believe that bad credit will not have an impact on your life. This is just not true. Bad credit, even a little bit, can make it difficult to impossible to get a credit card, a new car, house, or even certain types of jobs. It can affect your life no matter who you are. Bad credit is not limited to the poor.
Many wealthy people like doctors, lawyers, and corporate executives have bad credit. They are affected in numbers just as great as the rest of us more common people.