Credit Card Debt – How to Avoid It

The fact is that American families are under a lot of debt, this in not because they want to pay more money for goods and services, but this is happening due to lack of jobs and cash on hand. This has forced them to increase their debt just to survive.

The average American household has over 10 thousand dollars in credit card debt. As the influx of money reduces due to lack of jobs and downfall of businesses, people are forced to pay the essentials and leave the credit card debt for later.

The Obama administration has introduced a solution for this problem through which people requiring Credit Card Debt Help can approach the government for a grant for personal debt relief. This is to stimulate the small business and entrepreneur sector to eliminate their debt. With the help of this grant they could stimulate the economy by either starting a new business or expand the existing one. The first and the foremost thing that a person can manage through this loan is use it as a Credit Card Debt Help to clear the bank liabilities and get freedom from paying more interest to the bank at a higher rate and plan ahead for the future.

With Credit Card Debt Help it will be possible for people to be able to concentrate on more productive issues than to stay under stress with lingering bank interests generated by groceries shopping.

All you have to do to get relief is to apply for a grant from the federal US government; this will be a great Help for you. There are many debt settlement companies which are able to provide Credit Card Debt Help. This is actually done through debt consolidation which reduces the interest rates and making payments becomes easy as the total debt amount reduces which you can eventually pay off completely.

Debit settlement companies offer free counseling to let you know how much relief you can get and during the what period you will be required to pay off and their paid service offers active involvement in getting you lower interest rates from your creditor company. Credit Card Debt Help is what every American citizen needs today to take care of his current debts.



By: Brandon Frazier

Everyone wants to know how to beat credit card debt, well, here’s how I do it…

I’ve put together a 9-step system for dealing with credit card debt. Actually, not just credit card debt, but any kind of debt. Using this system, you’ll be able to get your debt paid off much sooner than you would think.

I call this system the Debt R.E.D.U.C.T.I.O.N. System. Let me explain how it works.

R – REALIZE There Is A Problem

Until you realize there is a problem and that you need to do something about your credit card debt, nothing is going to happen.

E – EDUCATE Yourself

A little education is critical to understanding how bad credit card debt really is for you. It’s keeping you under the thumb of the credit card companies, and until you see it for what it is, that’s where you’ll stay.

D – DECIDE To Get Yourself Out Of Debt

As nice as it would be to have some kind of magic “Get Out Of Debt” button that you could press, it just doesn’t work like that. You need to decide to get your debt paid off, once and for all.

U – UNDERSTAND Just What Got You Into Debt

Understanding the habits and choices that got you into debt in the first place is critical. If you don’t understand the causes, you’re not going to be able to avoid them in the future, putting you right back where you started.

C – CREATE Your Plan

Having a plan for how to beat credit card debt is half the battle. If you have a plan, you have a blueprint that can help keep you on track when you might otherwise stray.

T – TAKE Action Starting Right Now

Taking action is simply the MOST important part of the whole system. If you don’t take action on all the other steps, it’s all a waste of time.

I – INVITE Challenges

Challenges are a natural part of life. Don’t worry about them, or be scared of them, because they’re going to pop up whether you like it or not. Instead, invite them and welcome them when they do happen, so you can get past them and move on.

O – OVERCOME Those Challenges

When those challenges do appear, and threaten to derail your debt reduction plan, overcome them and then continue on. Don’t let them get you so far off track that you lose sight of the end goal.

N – NEVER Get Into Debt Again

Decide now that once your debt is paid off, you’re never going to let yourself get back into debt again. Otherwise, you’re just on a treadmill and you’ll never actually get anywhere.



By: W. M. Blake

Consistent, disciplined effort wins the race…

As a consultant, I encounter resistance to solid advice. “Do THIS,” I suggest, “and you can make more money.” Most of my clients take the advice and the proof is in the pudding. They make more money. They pay down debt. They build wealth. Some don’t. I can relate to the rebels. I, too, hate having to do something…even when I know it is the right thing to do!

One of the biggest challenges I encounter is the suffocating burden of debt. Money buys options. Debt eliminates options. Do you struggle under the mounting pressure of debt…personally and/or in your business? You are not alone. The statistics on debt are troubling:

• The average American household has 13 payment cards (credit cards, loan payments and store cards.)

• Americans carry, on average, $8,000 in credit card debt from month to month. If you were to make only the minimum monthly payment on that debt, at 18% interest, it would take 25 years to pay off and cost you more than $24,000 in total.

• 46% of all Americans have less than $10,000 saved for their retirement.

• 96% of all Americans will retire financially dependent on the government, family or charity.

• Only 2% of all homes in America are paid for.

I got these statistics from a website offering debt consolidation services. Unfortunately, most folks misunderstand and misuse these services…and get further into debt. These services can be creditors in disguise.

Here’s the good news. You can get out of debt. It’s EASY to do. IF…you follow this system EXACTLY.

Step One: Get to a KFP – Known Financial Position. Clean up your business Balance Sheet. Create a personal, family Balance Sheet. Have your Bean Team help you, or give me a call. The section called Liabilities is what you owe; it’s your total debt. Once you know, you can start bringing that number down. I know it’s scary. However, knowing is better than not knowing. You can always improve the situation if you are willing to confront it.

Step Two: Start selling at the right price. Include debt reduction dollars in your Budget. Your customers will have to assume some of the burden of your debt in order for you to create dollars to pay it off. Include in your selling price enough salary to contribute to paying off your personal debt and enough profit to pay down your company debt. Much of the debt I see in my consulting work is a result of hardworking owners trying to get by on too little. If you haven’t charged enough in the past, you may have used debt to just get by.

Step Three: Stop buying stuff on credit. On a recent episode of Saturday Night Live they aired a ’spoof’ TV commercial for a new debt reduction book called, “Quit Buying Stuff You Can’t Pay For.” It was a one page book with one sentence on the page: Quit buying stuff you can’t pay for.

Step Four: Read The Richest Man in Babylon by George Clason. This slim book uses a story to teach the basics about reducing debt and increasing your wealth. This timeless classic was written during the Depression and offers spot-on advice for today.

Step Five: Talk to your creditors. You may be able to work out a better interest rate or payment schedule. Your creditors don’t want you to declare bankruptcy. Talk to the owner or general manager of your supply house. Work with the credit agents for your store cards. Let them know you have a plan and that you are committed to paying off the balance.

Step Six: Start saving. A little bit every month adds up. Start with whatever you will commit to…$100 is better than nothing.

Step Seven: Systematically pay down debt. This is the easy-hard part. It is easy to do it. The problem is it is easier NOT to do it. Put together a grid of all your debt.

We carry around all kinds of emotional and psychological baggage. Maybe Momma always told you what to do and you are still fighting Momma. Maybe you are in denial about what you really owe. Debt management counselor David Huffman claims, “97% of people don’t know what they owe. No one ever taught them ‘Money 101′ of ‘Debt 101.’ That’s why they are broke and getting deeper and deeper into debt.” Whatever. Get over it and get disciplined. Now you know. Put this system in place today. And bring down your DEBT.

Are you ready to make more money? To bring down your debt? I would be delighted to send you a FREE customizable Excel file of a debt reduction grid form. Just go to www.barebonesbiz.com Fill out the Contact Us page and request the Debt Reduction Form. We will send it to you via email…no charge. I am here to help you bring down debt and increase your FREEDOM!



By: Ellen Rohr

Remember how EASY it used to be? If you needed or wanted something, just go ahead and buy it. Put it on plastic, and pay for it later.

Those days of easy credit are long gone in America. They ended with a bang when the financial crunch hit. It may have been fun while it lasted, but for millions of Americans, the end of easy credit has put them on the road to financial disaster! For too long, too many of us lived beyond our means. Now it’s time to pay the piper and we can’t afford his bill!

What did all that easy credit lead to? For the average American family, about $18,000.00 in credit card debt! That’s just the PRINCIPLE- it doesn’t include the interest, the finance charges for carrying the debt, or the myriad of other fees credit card companies tack on each month.

If you are one of the millions of hard-working Americans who are mortgaging your future because you practically owe your paycheck to credit card companies, there is hope! You CAN get out from under all that credit card debt! But you need to take action immediately, because the longer you wait, the deeper you get.

DO YOU RECOGNIZE YOURSELF IN ANY OF THE FOLLOWING?

• Are you constantly putting purchases on your card, instead of paying cash?
• Are you paying just the minimum required amount on your credit cards?
• Are you skipping payments on some cards so you can pay others?
• Are you using cash advances from one card to pay off another one?
• Have you maxed out one or more of your cards?
• Are you afraid to open your bills each month, or are simply ignoring themaltogether?
• Are you being hounded by credit card companies wanting a payment?
• Are you being threatened with collection if your bills are not paid?
• Do you already having one or more accounts in the hands of a collection agency?
• Does your consumer debt exceeds 20% of your net income after taxes, or your total monthly payments on all debts exceeds 35% of your monthly gross income?
• Are you considering filing for bankruptcy?

If you recognize yourself in any of these symptoms, you are in a condition called credit card overload. At the present time, more than 50 million Americans are in this same condition, and it’s getting worse with each passing day. Credit card debt continues to mount, more and more people are going under. We need to face the fact that we got ourselves INTO this situation, and we have to get ourselves OUT of it, because nobody else will do it for us!

WHAT CAN YOU DO?

How well can you discipline yourself? You are in debt because you have been used to having what you want when you want it. That has to change, and you are the only one who can make that change. Can you do it? Only you know the answer.

Your goal is to GET OUT OF CREDIT-CARD DEBT.

Seems logical, doesn’t it?But unless you actually make this your number one priority and stay with it, it will NEVER happen!

We are all creatures of habit- we get in a rut and tend to do the same things over and over again. Using those credit cards is so easy! And every time we do it, we reinforce the habit, making it that much harder to break!

This is why this step is so dependent on your ability to discipline yourself! Once you’ve decided you are not going to be burdened with credit-card debt for the rest of your life, you, and ONLY you, can make it a reality! It will require a complete change in the way you look at spending. Make getting out from under that debt your number one priority and stay with it!

STEP 1 – TAKE A LOOK AT WHERE YOU CURRENTLY STAND

Get out ALL of your credit card statements for the past month, and read them. I don’t mean “look at them” – maybe for the first time ever, really read them! Why? Because they will tell you exactly where your money has been going all this time!

STEP 2 – ASSESS YOUR CURRENT SPENDING AND CHARGING HABITS.

Now comes the hard part- taking a critical look at what you’ve been spending your money on. This is extremely important because it’s going to tell how you got into this situation in the first place. It’s really the FIRST STEP in getting out of it!

It’s critical that you look at EVERY expenditure, big or small!

Get out your credit card statements, your bank statements, and your checkbook.

Now take paper and pencil, and write EVERYTHING down that you spent last month, and how you paid for it. It doesn’t matter if it was just a cup of coffee at Starbucks, write it down!

The first thing you need to know is WHERE the money went. The second thing is HOW you spent it- cash, check, or credit card.

The first thing you want to list are the “trifles”- those incidental things you bought last month.

(By the way, it may shock you a little to see how much you spend on trifles- that coffee and donut at Starbucks, that bottle of water, that snack at the mall!)

STEP 3 – PUT AWAY YOUR CREDIT CARDS!!

How well can you discipline yourself? You are in debt because you have been used to having what you want when you want it. That has to change, and you are the only one who can make that change. Can you do it? Only you know the answer.

Your goal is to GET OUT OF CREDIT-CARD DEBTS.

Seems logical, doesn’t it?

But unless you actually make this your number one priority and stay with it, it will NEVER happen!

We are all creatures of habit- we get in a rut and tend to do the same things over and over again. Using those credit cards is so easy! And every time we do it, we reinforce the habit, making it that much harder to break!

This is why this step is so dependent on your ability to discipline yourself! Once you’ve decided you are not going to be burdened with credit-card debt for the rest of your life, you, and ONLY you, can make it a reality! It will require a complete change in the way you look at spending. Make getting out from under that debt your number one priority and stay with it!

If you have read this far, it’s safe to assume you really WANT to get out of debt! The next step is to spend $5.00 and buy my e-book, “End your Credit Card Debt”. It will lay out a plan for you- a step by step program that will allow you to get out from under your debt load. It has worked for countless thousands of others and it will work for you.

You will find all the details here: www.vanbizman.info/cc

Get it and go for it!



By: David Hallett

Learn how to reduce your credit card debt faster using the Snowball Method. Visit www.debtopedia.com for more helpful information and to get a free copy of my special report “The Secrets of Credit Card Debt”

Derek and his dad finished the 400m race after tearing his hamstring in the 1992 olympics … Derek Redmond

I have a good credit score, last time I checked about 6 months ago it was about 720-730. Recently I have acquired a big credit card debt, about $9,000 on one credit card (with a limit of $10,000) and about $3,000 on another one (with a limit of $5,000) for many different personal reasons. After the whole spending money ordeal was over, I was left with all this debt on my credit cards. Since then, I have cut back on all unnecessary spending, besides the obvious things like food, gas, etc. I have never been late on payments and have never been over the credit limit. I Also try to pay an extra hundred bucks on top of the minimum payment due when I can. Are there any good ideas on how to consolidate these two credit card debts and help me out with all this? Thanks!

I have about 25K in credit card debt. I am planning to buy a 540K house. Currently I have great credit, is it possible to add my credit card debt into the home loan in order to make it a single monthly payment. What is the loan program called? I am shooting for 5 yr. ARM. Me and my wife plan to live there for about 3-4 yrs.
To add I mean to pay off my credit cards with the home loan.

I have several accounts on my credit that are all in good standing. I just have one credit card with $25,000 in debt. I was making payments on it but when my husband was laid off, I couldn’t make payments. It’s over 90 days due and I want to settle the debt but I am afraid of how it will affect my credit score and what I can do to make sure it is not too negative on my credit. Any advice?

Credit card debt is a real problem, and millions of people need help. They are an integral part of our economy because our country is run on a credit and debt system. Sometimes it may seem like the system is out to get you. It is very easy to get wrapped up in the cycle of making purchases now and paying the consequences later, but this is not a good practice.

This is a common scenario: You have a fairly generous limit on your credit card. You make small purchases here and there, and perhaps even a big purchase every once in a while. You think that paying the minimum monthly payment will suffice because you are keeping your credit score up. Then one day you realize you are over the limit, so you use another card to pay this one off. But does this really solve the problem? No. It just starts the cycle all over again with another card.

If you are tens of thousands of dollars in credit card debt, there is help available. You may be surprised to know that there are professional debt relief workers that know exactly how to handle your problem. In just a few minutes, they take a snapshot of your total financial picture and create a way to tackle your issues. Many people are getting credit card debt help and negotiating settlements to pay back less than half of what they owe. These debt settlements can have your seriously delinquent bills paid off in 12-36 months with a monthly payment you can afford. Once you make your last settlement payment, your account is considered paid in full and you are not responsible for the rest.

With the tough economic times we are facing (and perhaps more to come) it is smart to be educated in a subject like credit card debt. The people that come out on top are the ones that realize that this is a problem that has a solution.

L. Waters

Research Writer, LowRateSearch

© 2009



By: L. Waters