SOURCE: Michael Mihalik

Michael Mihalik

September 28, 2009 13:43 ET

How Debt Makes Slaves out of Consumers

Debt Survivor Reveals Journey Back From Being Broke

SEATTLE, WA--(Marketwire - September 28, 2009) - Like millions of credit card users, Michael Mihalik didn't see it coming.

It started when he was in college. He didn't buy a lot of stuff, but he did charge a few things here and there -- some meals, a few books, some clothes over the years -- without realizing that meeting his minimum payments on his cards only paid the interest on his balance.

Mihalik, author of "Debt is Slavery and 9 Other Things I Wish My Dad Had Taught Me About Money" (www.debtisslavery.com), started using credit cards when he was 18. By the time he was 24, he discovered that credit card debt had crept up on him and he found himself so deeply in debt that he was working 50 hours each week just to service his minimum payments. Barely two years later, he worked himself out of debt. Now, Mihalik wants everyone to learn from his experience.

"When I was trying to pay off my debt, I certainly felt like a slave to my credit cards," Mihalik said. "For more than a year, every penny I earned went to loan payments. I worked 50-plus hours a week and the beneficiary of my labor wasn't me but the banks and credit card companies. Then I discovered that before I could change how I handled my finances, I had to change the way I thought about money."

Once he changed his attitude, he realized his first step toward personal economic recovery was to stop accumulating debt.

"You can't get out of debt by simply changing the way you handle your money, or making a savings plan or hiring a credit counselor," he said. "In order for any tactic for getting out of debt to work, you must first change the way you regard money, and understand how to be its master, as opposed to allowing debt to master you."

About Michael Mihalik

Michael Mihalik, author of "Debt is Slavery and 9 Other Things I Wish My Dad Had Taught Me About Money" from October Mist Publishing (www.debtisslavery.com), is a successful mechanical engineer who got deep into debt during his college years. Michael has since refined his philosophy about money. He has created a set of ideas and rules for financial security that can be applied at any income level.

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