Eliminate High Interest Credit Card Debt

The average American family currently owes more than $9,000 in credit card debt – and many people owe much more than this amount. Unfortunately, people find themselves in this position due to any number of unforeseen circumstances. As a matter of fact, great deals of individuals have used credit cards responsibly for many years, and due to some misfortune have ended up needing their credit cards as a safety net.

This situation tends to have a "snowball" affect due to high interest rates, and makes it nearly impossible for the average American to successfully pay off their credit card debt in a reasonable amount of time. It's no wonder that people can't get ahead; take a look at the staggering amount of monthly accruing interest on many of these accounts:

Credit Card

Amount of Debt

Interest Rate

Monthly Interest Accrued

ABC

$20,000

29.99%

$499.83

DEF

$15,000

28.99%

$362.37

GHI

$25,000

24.99%

$520.63

JKL

$20,000

29.99%

$499.83

TOTAL

$80,000

$1,882.66

If interest is accruing at a rate of nearly $2,000 each month in some cases, it's just not realistic that the average family can pay their credit accounts off simply by making the required minimum monthly payments. Rather, a much larger amount will be needed to even put a small dent in their credit card balances.

If your credit card debt is out of control, and you're facing a similar situation as cited above, it's important that you take the necessary steps to pay your accounts off much sooner than the several years it will take if you continue making monthly payments to your credit card companies.

Fortunately, you have options available, and I highly recommend that you start taking a serious look at these options, and carefully research each of the following:

• Consumer Credit Counseling
• Debt Settlement
• Debt Consolidation
• Bankruptcy

You may be required to give up some of your time to put the effort into researching and ultimately finding the best solution for your individual situation, but you deserve some relief from the interest rates you're paying. I can honestly tell you that once you have completed your research and made your decision, you'll immediately breathe a sigh of relief. It's time to start living again and make your debt a thing of the past.

Life After Debt Settlement - Budget, Credit, and Debt Help

After successfully completing a debt settlement program, most consumers are looking forward to a brighter future of being debt-free. In order to do so, I have listed some healthy tips to manage a brighter financial future.

Steps to managing debt and staying debt free:

Control your spending and develop strategies to manage your debt.

1. Cut spending- Cook at home, use other means for transportation to save on gas, adjust the thermostat around the house to lower your electric bill, buy used goods on Ebay for instance.

2. Pay with cash

3. Track your expenses.

Paying your bills on time. When you pay your bills on time, you establish yourself as a responsible, creditworthy individual. Destroy all of our credit cards except one, (preferably the one with the lowest possible long-term interest rate). Leave the card at home and use it only for emergencies. It's important not use up the entire credit limit, which also may affect your credit negatively.

Get a copy of your credit report from one of three major credit bureaus: Equifax.com, Experian.com; TransUnion.com. Review your report carefully for accounts or addresses that don't belong to you, creditors who have made mistakes and companies who have looked at your report without your permission. Immediately, notify any mistakes to the credit bureau. That means requesting and reviewing a report from the other two bureaus to make sure the mistakes are corrected. Maintaining a good credit history is essential to securing future credit, loans and mortgages. Even if you think your credit history is problem-free, it's time you know for sure. Errors occur more often than you may think. Examining your credit report regularly allows you to verify the accuracy of the information being reported by your creditors. Services like DirectAlert® make it easy to stay on top managing your debt and your credit report information.

Set financial goals

To manage debt you need to know how much you have and develop strategy to control it. If your expenses exceed your income, take a step back. Your debt should be no more than 25% of your gross annual income.

Create a spreadsheet with your net salary and any assets, investments, money in your savings and checking accounts, and anything else that is of value. Start by working out how much income you have each month after tax and other deductions. All expected expenditures for the month should be listed another spreadsheet, including rent, food, entertainment, trips, and loan payments.

If there's nothing left or if you're spending more than you bring in, it's time to examine your expenditures and cut out some luxuries.