Get Yourself Out Of Debt

How You Can Reduce and Eliminate Credit Card Debt
Courtesy of: http://wiki.ehow.com/Cut-Credit-Card-Debt

Simple Ways To Trim Your Credit Card Debt Yourself

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The average American consumer is now digging him or herself deeper into debt, and savings rates are dropping as consumers strive to keep up with increasing debt payments, balooning credit card minimums, and a worrisome tendency to financially overextend oneself during the holidays. In short, if Americans don't have the cash, they will pull out the plastic and borrow their way to wealth.

Sorry, but the party may almost be over.

The number of people who were falling further behind paying their credit card payments on time foreshadows a gloomy economic future. We've already seen an ongoing "credit crunch" in the housing market, and nationwide, home foreclosures are rising, affecting millions of Americans who could lose their largest investment, their home.

The housing market is now revealing signs of contraction. We have stated for the past several years that we doubted home prices could sustain such meteoric rises without falling back to earth sometime. We were right.

Our recommendation: Set your goal now to get out of debt as soon as possible, pay down high-interest credit any way you can, dispose of unnecessary assets and payoff debt, and start cleaning up your credit report yourself to ensure that you will be able to have access to ready credit at favorable terms when and if you choose to add to your debt levels.

Experts fear that as gasoline and home heating prices continue to rise, and interest rates creep upward as inflation takes hold, added to restricitve bankruptcy legislation enacted two years ago, will stretch personal budgets to the breaking point and will all combine to create the perfect storm of personal debt nightmares across America.


Now there is a free online tool to help measure your spending with others... use this online form to see where your money goes each month, and gauge it with how others across the nation are spending their hard-earned dough:
Money.CNN.com

There are also about two dozen money topics at this website of vital interest to anyone who is seeking to improve his or her finances. Great website!


Yes, it's true. Most Americans have piled up way too much credit card debt. Like the articles above, we read it in the news on a weekly basis.

Only now its gotten a bit personal... right again? You personally have too much credit card debt and its about to drive you crazy. It's affecting your sleep. You've lost your appetite and you worry all the time.

Well there IS hope, so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is this: your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment.

So here are a couple points to help you deal with your credit card debt.

The first thing you have to do is simply contact your creditor and let them know your situation. Ask for a lower interest rate or a repayment plan.

Don't expect magic. With credit laws tightening since enactment of the new bankruptcy laws since October 2005, we've noticed that lenders are less helpful getting you out of debt than they are in getting you INTO debt!

But contact them anyway, it's your best first step. You might not have thought of it because you're just naturally so polite but its a very good strategy to be courteous at all times when negotiating with your creditor. Be polite, but firm. Come across as one who knows what you're asking for and expect to get it.

Never threaten to quit paying your debt if you don't get your way -- say, a lower interest rate. Instead, explain that you'd be able to better pay your bills on time if the billing cycle was in synch with your paydays. We've known many lenders who will gladly adjust billing dates to better serve you. They want to be paid on time. Resetting the due date is simple.

If you're not sure what you're asking for in the first place you might consider a reputable credit counseling service. There's a lot of great, honest organizations out there whose mission is to help you work things out with your creditors. There are also a lot of lousy ones.

It's best to check out al your options and not jump into bed with one too quickly. The Federal Trade Commission has put together important information on what to expect and what to demand of a credit counseling busines... as well as what you need to be wary of. In that business, the term "Buyer Beware" is very real.

Next you need to stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it! You simply can't keep adding to the problem by running the debt up any higher.

Experts point out that this is actually one of the hardest parts of cutting credit card debt. Its like you're addicted to spending money you don't have. So go cold turkey and drop the spending habit.

Begin slicing away at debt. Start paying the card balances with the highest interest rate first and work from there.

How do you do that? Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is just designed to keep you on the hook longer anyway. The credit card companies are in this business to make a profit and want to have you paying them for years to come.

Paying just even a little extra each month makes a big difference in the long run.

Lastly, keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.

Contributors to this article: http://wiki.ehow.com, and
Steve Johnson's "How To Fix Your Credit Report" Blog.

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