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Credit Card Debt

Is Credit Card Debt Relief Possible?

Credit card debt was an inevitable situation as credit cards became the norm in almost every household; increasingly people are using their cards just to pay for everyday goods. Very few people that can say they owe nothing on them and as a consequence these finance companies are now owed thousands of dollars on most of the cards that have been issued, unfortunately people are only now beginning to realize that the damage has been done. The easiest action to take is to arrange credit card debt relief whilst you are still in a position too.
The first thing to do before opting for financial help is to stop using the card all together because if this doesn’t happen it will be almost impossible to devise a debt relief plan. Once the debtor has decided to do something about the debts incurred they can start looking for a suitable credit card debt relief option. Whilst there are a number of debt consolidation options, the three mentioned below are the most common used for people in similar situations.
Obviously, the easiest way to proceed is to apply for a credit card with a low interest rate on balance transfers where the debt can be consolidated where repayments can be made regularly within a specified budget. If this method is not available then a consolidation loan may be a debt relief answer where a number of debts can be replaced with just one at a lower monthly installment.
This option does require a certain level of commitment on the debtor’s part as once the debts are clear there must be no temptation to use them again. Remember, consolidation by card or loan will only work if the debtor has not already damaged their credit history.
There are times when credit card debt relief is not possible by this route and it is left to negotiation, often by a specialist company. They will normally suggest a sum of around half the debt be paid off with the remaining amount canceled by the creditors.
The last option available to the debtor is to apply for bankruptcy which will clear all the debts and although this may sound inviting it should only be regarded as something done when all else has failed. This is the last resort for a debtor because once they declare bankruptcy, their credit standing fails and it will be difficult to get further loans; however, the positive aspect of filing for bankruptcy is it enables a fresh start. Whichever credit card debt relief option you take, remember that this should only ever be a one-off as important lessons about managing finances should be learnt so the situation is not repeated.

Anthony Dean has helped thousands reduce their credit card debt. Find out how he can help you.
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Credit Card Debt Information and Help

You’ve probably heard the frightening statistic that the average American owes more than $8,000 in credit card debt. Fortunately, that statistic isn’t completely accurate. Here are true credit card debt info and statistics.

Average Credit Card Debt The average credit card debt is actually around $2,200. This is still a lot of money when you consider that the average income is $48,600, but it’s not a dire figure.

However, only 45% of Americans have credit card debt. 23% of Americans don’t even have credit cards. The remaining 32% pay their credit cards in full every month. 8.3% owe more than $9,000 on their credit cards.

If you carry a balance on your credit cards, you can become one of the 32% who doesn’t. Although it seems challenging with rising fuel and food prices, resolving to cut back on your spending can make a real difference in your ability to pay debt without truly restricting your enjoyment of life.

Total Consumer Debt Info You may be wondering how these statistics are derived. They’re derived in part from the Federal Reserve’s Survey of Consumer Finances, which is conducted every three years.

As of June 27, Americans had a total of $2.46 trillion in consumer debt, but this figure includes mortgages, auto loans, student loans, and other non-revolving debt. Revolving debt, which is usually credit card debt, was only $904 billion. While this figure is still high, it’s not the devastating figure you’re more likely to hear on the news.

What Can You Do? If you’re one of the people with revolving debt, you might be wondering how you become one of the people without it. It’s not easy, but it can be done. The key lies in learning to control your spending. American society doesn’t make that easy because our economy relies on spending, but if you have the willpower to do what’s right for your personal finances, you can do it.

There are three basic steps to controlling credit card use:

Avoid buying things you want, but don’t actually need. Food is a need. Dinner in an expensive restaurant is not. Shoes for your children are a need. $200 designer sneakers your child will grow out of in three months are not. Transportation is a need. Unless you live up a steep, unpaved road, a $40,000 SUV is not. Impulse purchases are usually wants, not needs. Wait at least two weeks before buying anything. If you still want it after two weeks, it might be a need, or it might simply be something you really want. If it’s something you need, buy it. If it’s something you really want, buy it only if you can afford to pay cash without limiting your ability to pay off debt or save for retirement. If you’re still paying off your credit cards, avoid buying things you want, no matter how much you want them. Once you learn to control your spending and differentiate between needs and wants, you can pay off debt more quickly. Soon you’ll be one of the 45% of Americans who pays off their credit cards every month, and you won’t be contributing one dime to the $904 billion in revolving debt.

Source: http://www.bills.com/credit-card-debt-info/

Justin has more than 5 years experience as a financial adviser, his key areas are loan consolidation, debt relief, mortgages etc.
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Credit Card Debt Solutions

Most people have credit card debt for one simple reason: they spend more than they earn. However, there are other reasons why you might have credit card debt, such as a medical emergency, a one-time emergency expense, rising costs, or impulse control. No matter how you got into debt, there’s a solution. Review the situations below to find the right credit card debt solutions for you.

Overspending

If you spend more than you earn, the first step is discovering why. It could be because your mortgage has recently shot up, leaving you with little money for other expenses. It could also be because you make a lot of impulse purchases on your credit card. If you have high fixed costs, you should consider scaling back on luxuries like cable television, movie rentals, and eating out.

If you spend too much because you like to buy stuff, then you need to learn to ask yourself if it’s something you really need. Wait two weeks before making any purchase. Chances are you won’t really want it anymore. Once you control your spending, you’ll have an easier time paying off credit card debt.

Large One-Time Expenses

If you have credit card debt because of a large one-time emergency like car repairs, your first goal is to pay off that bill as quickly as you can by reducing spending in other areas. Once that’s done, use the extra money to build an emergency fund. Tap the fund for true emergencies, like car repairs or emergency room visits, so you don’t have to go into debt again.

Extended Medical Emergency or Illness

If your family is experiencing a major medical emergency or long-term illness, sometimes credit card debt is the only way to get by, especially if the primary earner is the one who is sick. In this case, your best bet is to negotiate with the doctor or hospital to reduce the medical bills. If the bills are more than you can ever reasonably pay, you may have to consider bankruptcy. Medical bills are the reason for 50% of all bankruptcy filings.

Extended Job Loss or Other Financial Hardship

Many people find themselves relying on credit cards to pay basic expenses after they lose their jobs. If you’re one of them, your first step should be to reduce every possible expense. Cancel cable, cut back on clothing and food purchases, don’t take vacations, do whatever it takes to cut your spending. If you have student loans, apply for forbearance. If you have a mortgage, find out if your lender can also extend a temporary forbearance. If you still can’t pay off your credit cards, consider contacting a credit counseling service for help. They’ll review your finances and may recommend a debt management plan, debt negotiation, or bankruptcy.

Once you get back on your feet, dedicate as much money as you can to debt repayment. You should also establish an emergency fund and continue to spend wisely so that you never find yourself deep in debt again.

For more articles visit: http://www.bills.com/credit-card-debt-solutions/

Justin has 5 years of experience as financial adviser; his key areas are consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.
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Debt Consolidation – your First Step to Financial Responsibility

In today world, almost everyone owning at least one credit card and most of people owning more than one card. Credit card has enabled you to buy things with electronic money, what you need to do is just sign your signature on the credit card receipt. It has made your life so easy until you may not aware that you might over spending each month. If you not manage it probably, you may trap into credit card debt like most of Americans. According to statistics over 40% American families spend more money than they earn and the average American household has nearly $10,000 in credit card debt.

The worst case option for unbearable credit card debt is by declaring bankruptcy. But if you start to serious look at your debt problem and handling it properly, you will have a better option to get rid of credit card debt without the need of bankruptcy. Don’t choose this option unless you really need to do so, debt consolidation is always your better options.

Debt consolidation is simply the process of combining all accumulated debt from all the various creditors into one smaller, more manageable payment. It could be in the form of another credit card or some sort of loan but the best solution really boils down to what works best for you and your current situation.

Debt consolidation will enable you to organize your credit card debt, pay much less in interest and even drop a portion of your debt in some circumstances. Debt consolidation will combine all your debt in one manageable monthly payment with a single due date. With that, you only need to remember one payment due date, miss payment or late payment can be avoided. This will help you to rebuild your good credit records and eventually improve your credit ratings.

If you have home equity, you are lucky because your actually can opt for a home equity loan and use it to pay off your credit card debt. Home equity loan has a much lower interest rate and it can be spread over more years and the interest is tax deductible.

By consolidating your debt into one payment, your credit cards are now free and clear. At this time, your credit card will be back to maximum credit limit for you to use again. If you are not changing your spending behavior, you may trap into to another credit card debt. Hence, a good first step is to cancel most, if not all of your current credit cards. You may keep one for gas and groceries and another one for emergency backup purpose. Pay off your balance each month to develop a good credit rating.

In conclusion, don’t let your credit card debt goes into worse situation where bankruptcy is the only option. Start your first step to financial responsibility and look at your credit card debt seriously; consolidate them to one smaller and more manageable payment. Do a little research and find the best debt consolidation deal you can for your situation and then change your spending behavior so you can get rid of your credit card debt in a few years down the road.

Cornie Herring is the Author from http://www.studyKiosk.com. “StudyKiosk-Credit Basics” is an informational website on credit basics and debt consolidation. To see recommended, credible lenders and loan service companies, visit: Recommended Bad Credit Debt Consolidation Services and Lenders

Cornie Herring is the Author from http://www.studyKiosk.com/CreditBasics. “StudyKiosk-Credit Basics” is an informational website on credit basics and debt consolidation. To see recommended, credible lenders and loan service companies, visit: Recommended Bad Credit Debt Consolidation Services and Lenders

Options to Become Debt Free

Regardless of how you got into debt, there are options to get debt free. Which option is best for you will depend on your situation.

The first option is simply to work to pay off your debts on your own. It’s not enough simply to pay the minimum amounts due on each card. Create a budget to determine how much you can afford to put towards paying off your debt. By increasing the amounts you pay each month, you are greatly decreasing the amount of time that it will take you to pay off your debt. It is a good idea to start with the debt with the highest interest and concentrating on getting that paid off, then moving on to the credit card with the next highest interest, etc. This is a good option for those with only a low to moderate amount of debt or who have the willpower to stick to a strict budget.

Another option that people choose for getting debt free is a loan. This could be a debt consolidation or home equity loan. Debt consolidation loans are specifically designed to pay off debt, and generally carry a larger interest rate than normal car or home loans. They also are not available to everyone. A homeowner can generally get a good rate with a home equity loan, but it is not usually a good idea to use it to pay off debt. With a home equity loan you are securing the debt with your home and could be at risk of losing it if you do not pay off your debt.

A third major option is a debt management plan. This type of plan is beneficial for a wider range of people as it can be made to fit your needs. With this plan, you will pay one monthly payment to the debt management company who will then distribute that money to your various creditors. They can usually work with your creditors to lower your interest rates and cancel many fees on your accounts. This will allow you to put more money to actually paying off your debts. In many cases, you can become debt free in three to five years with a debt management plan.

Another option that carries little benefits is debt settlement. Debt settlement companies often promise more than they deliver, so be careful. They will attempt to work with your creditors to allow you to pay only a portion of your debt. After you add on the extensive debt settlement fees and the taxes you have to pay on forgiven debt, you often don’t pay any less than you could have if you had just paid your debts in the first place. Also, there is no promise that they will be able to work out a beneficial deal with your creditors anyway.

A final option is bankruptcy. This is an extreme solution and should only be used when others have failed. While bankruptcy can allow for people to have a fresh start, it also ruins your credit for years to come. Make sure that it is absolutely necessary before you take this step.

Whichever option you take to get free of your debt, make sure that it is the best option for you. A great way to determine which might be best is to talk to an accredited credit counselor who can analyze your situation and give you a proper assessment.

Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with lowcardinterest.com to help individuals get out of debt and reach their financial goals.
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Is There A Way Out From Credit Card Debt?

It was only a matter of time before the number of people experiencing credit card debt would increase; cards have become easier to obtain and more tempting to use, which is a lethal combination. The swipe and spend culture has created massive problems and people are now realizing just how foolish they have been just spending indiscriminately. Once this point has been reached then it only remains for some form of relief from the credit card debt to be arranged.
At this point it is important to start as you mean to go on and stop all spending on the card otherwise it will make arranging a debt relief plan much harder to implement. Making the decision can be the hardest part but no-one said credit card debt relief would be easy. There are various debt consolidation alternatives available but the three most common options are detailed below.
The easiest method of debt consolidation is where the person still has a good credit rating and uses another credit card that has a low rate of interest where all the debts can be transferred to one card. Another method is to arrange a consolidation loan to relieve the debt, then paying just one amount which is easier and within a budget.
This option does require a certain level of commitment on the debtor’s part as once the debts are clear there must be no temptation to use them again. Debt consolidation does require that the debtor is still able to access credit and that they will have sufficient funds to repay the loan.
If credit card debt relief is not available then negotiation remains and this is preferably left to a debt relief company that can deal with the card companies directly and negotiate payment conditions. They will normally suggest a sum of around half the debt be paid off with the remaining amount canceled by the creditors.
If all else fails the debtor is left with bankruptcy to clear the debts but this is not something that should ever be looked upon as the first course of action as there are serious consequences to be considered. The debts may be clear but they will find it hard to get any form of credit for a long time and will have to rebuild their credit history from scratch although it does enable them to have a fresh start. Credit card debt relief should not be something you ever repeat because it will mean you haven’t learnt anything from your experience.

Anthony Dean has helped thousands reduce their credit card debt. Find out how he can help you.
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Consolidate Your Credit Card Debt With or Without a Loan

Debt consolidation does not always have to consist on a debt consolidation loan. Some consolidation agencies can achieve good results by negotiating with credit card companies or credit card issuers on your behalf. In any case, the aid of professional debt consolidation agencies is needed in order to get good results and reduce your debt so you can afford payments and avoid bankruptcy.

Credit Card debt can be consolidated by using a debt consolidation loan. A debt consolidation loan is an excellent solution but is not always available for everyone. However, debt consolidation agencies have a battery of options for reducing credit card debt being debt negotiation their first and most powerful weapon.

Credit Card Debt Basics

The problem with credit card debt is that it is easily accumulated. Due to the flexible nature of credit cards and due to the fact that they are literally within the reach of your hands, using them when you lack the cash is very tempting. However, if you lack the discipline necessary to use them you will eventually find yourself unable to pay the minimum monthly payments.

Moreover, credit card financing is extremely expensive. Probably the only source of finance that charges higher interest rates than credit cards are payday loans and cash advance loans. Thus, debt accumulates easily due to the high interest rates, fees and costs charged for using the credit card to finance purchases.

Debt Consolidation Loans

A debt consolidation loan is used to cancel all debt on your credit card balances and spreading it over a long repayment program with low and affordable monthly payments due to a significantly lower interest rate. This is an excellent solution to eliminate credit card debt as long as you do not begin using your credit card again to finance purchases. Otherwise your credit card debt will begin to accumulate once again and you will end up in a worse situation than before

Debt consolidation loans however, need to be approved and thus, your credit score has to be good enough so you can qualify. You can always resort to a home equity loan which can reduce the credit requirements necessary for getting approved for a consolidation loan. However, if you do not have sufficient equity and your credit score is low, you will have to resort to other means.

Debt Consolidation Agencies

A debt consolidation agency will contact your creditors and negotiate with them reductions on your debt. They have expert negotiators that can agree with your creditors: lower interest rates, debt refinancing, waivers, etc. These agencies will also help you make a budget and control your spending giving you tips on how to spend more efficiently and how to get more out of your money.

They will also offer you different options for debt reduction like using your credit cards to reduce your debt by taking advantage of 0% promotional periods and 0% Balance transfers. You just need to make sure that if they will handle payments on your behalf, they provide you with the corresponding receipts. Do not leave everything up to them, make sure they are actually doing their work as there are many scams out there and you can never know.

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about <a href="http://www.speedybadcreditloans.com/bad-credit-personal-loans.html” rel=”nofollow”>Loans for Bad Credit People and <a href="http://www.speedybadcreditloans.com/credit-card-consolidation.html” rel=”nofollow”>Credit Card Consolidation you can visit her site http://www.speedybadcreditloans.com/
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How to Avoid Debt While Using Credit Cards

There is no doubt that credit cards are very useful for paying for goods and services. They are safe, convenient and it means you don’t have to carry large sums of money around in your pocket. Carrying large sums of money can be very risky because if your money is lost or stolen, it is gone forever. Whereas with a credit card, you can just report it missing it will be immediately cancelled and a new one will be in the post the next day. Of course buying online with a credit card is the most popular, easiest way to buy goods and you have the protection of your credit card company.

However, if misused, credit cards can lead to debt and financial destruction. It is far too easy to spend money you do not own and before you know it, you can’t afford to pay back what you owe and get into financial difficulty. The simple fact is that if you borrow money, you must pay it back – and with interest. There is no such thing as free cash. If you don’t take immediate action then things can spiral out of our control which can be devastating.

If you in the situation that you have spent too much money and are in financial difficulty then it is time to stop using your credit card and re-access your financial position. You may need to change your lifestyle spending habits and make cut backs in order to clear your debts. Change your way of thinking – there is a way out of debt but you will need to make changes.

You must first recognize that you actually have a debt problem. You cannot attempt to sort out your finances unless you admit there is a problem and face up to your debts.

You then need to assess exactly how much it is that you owe. So many people do not actually know how much they owe. This maybe that they have so many debts that they can’t keep track of them all. By checking your credit card balances you will know exactly how much you owe and what interest you are paying. You should always aim to pay at least the minimum payment of your credit card bill. If you don’t do this it will affect your credit score rating.

When you are in the position of knowing how much you owe then develop and plan of how to pay the debt off. Do not just carry on paying the minimum interest repayment; it will take years to pay off your debt if you do this. A popular option is debt consolidation whereby you put all of your debts into one which organize your repayments into one affordable payment. Another option is to transfer your balance to a lower interest rate credit card, or even one that offers 0% balance transfer.

Only you can make the changes necessary to get out of debt and this must be done sooner rather than later, before things get too bad.

The author has several years experience in the finance industry. For more great tips on how to avoid debt and for help and advice to solve all of your debt problems go to Me Debt Free

Top Ten Ways to Get Out of Debt

If you don’t deal with your debt problems, they will soon grow quickly out of control so you must face facts and address your debt issues now. By failing to take action now, you may be risking financial ruin. Follow these top tips to get out of debt so you can live a happier, debt free life.

Being in debt can often be a worrying and distressing time, depending on how much you are in debt and how in control you are of your finances. However, the good news is that it’s always possible to get out of debt. With time and effort you can get through the pain of being in debt. You do need to realise you have a debt problem and face up to the fact that you will have to change the way to deal with your finances. Follow these tips to take the steps to get out of debt:

For more great tips to get out of debt and for help and advice to solve all of your debt problems go to Me Debt Free
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Don’t Turn Debt Consolidation Into your Next Credit Issues

Debt consolidation is one the most common debt solutions used by many debtors to plan for debt relief. By going through the debt consolidation, you are combining all your high interest debts into a single monthly payment on a lower interest rate. And most of time, debt consolidation will accompany by a debt consolidation loan. The debt consolidation loan will use to payoff all your debts and you only need to make payment on your debt consolidation loan.

With your debts payoff with the debt consolidation loan, all your credit cards’ balance will go back to zero and the credit card limit will go back to maximum for usage. If you do not control the uses of your credit cards and continue to swipe it and pay the minimum payment each month, you are at high risk to fall back to another debt issue.

If you are planning a debt free with a debt consolidation and accompany by debt consolidation loan, stick on your goal and don’t turn debt consolidation into your next credit issues. Things that you can do to avoid this tragedy from happening are:

1. Changing Your Spending Behavior

An impulse purchase is an unplanned or spontaneous purchase. And most of time, impulse purchase is made on items that are optional and it can causes you to spend out of you budget. If you tend to make such purchases, you need to change your spending behavior or else your effort to consolidation your debts and plan for a debt free will be a waste. When ever you go for shopping, write down the items you plan to purchase in a piece of paper and just buy the items in the list.

2. Make A Budget Plan

In order to avoid create new debts, you need to know how much you can spend with your existing earning after minus out your debt consolidation loan payment. A budget plan will definitely gives you a clearer picture on where your money will goes and how much. If you projected spending in your budget plan exceed your allocated budget, you need to cut away all the optional expenses such as entertainment, luxury vacations or downgrade your life style, for example if you use to buy branded cloth and shoes, you may now go for cheaper options so that you control your spending within your budget.

3. Avoid Swiping Your Credit Card

Use electronic money such as credit card may cause uncontrolled spending. Hence, avoid using your credit card again. If you are a type of person that hard to control the uses of credit card; then canceling most of your credit cards could be your wise decision, you can leave one or two credit cards for emergency uses.

4. Make Full Payment On Credit Card Balance

If you can’t stop using your credit card but you think that you can control swiping it just to buy items in your budget plan. Then, you must commit to yourself to pay full payment on your credit card balance each month. If you are just paying the minimum payment, your credit card debt will snowballing from month to month and will lead you to another debt issue one day.

In Summary

Debt consolidation is a debt solution that can get you out of debt, in contrary it can lead you to trap into second debt problem. Hence, you need to accompany debt consolidation with a proper spending management to ensure your debt issue resolve.

Cornie Herring is the Author from http://www.StudyKiosk.com. This is an informational website on credit basics, debt consolidation and bankruptcy. You can learn more about your money from our Money Lessons.
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