Credit Card Debt – How to Avoid It

A step by step video talking about the reality of credit card debt, and how the credit card companys are really charging you 83.3% interest.

Once a consumer adopt the habit of using credit cards it become impossible for him or her to get out of this habit. The use of credit card itself is not a bad thing but the wide spread use of credit cards without proper planning and proper knowledge about the interest rates against credit card as the bad thing. Mostly consumers feel that credit cards debt help them a lot in fulfilling there daily needs but they don’t have any idea about that this credit card debt help is just temporary and they will require the help of some one to get out of this help.

Credit card debt help attracts consumers to go deeper and deeper in to debt pools and once they realize it become useless to cry over split milk. Credit card debt help is very much important for consumers in order to get proper understanding about credit cards debts. Consumers should try to use this plastic money through proper planning. They should try not to use more than the cash which they have currently in there accounts.

Mostly consumers are also very much unaware of late payment penalties and credit card annual charges. They keep doing late payments and once they realize about the late payments penalties till than they have waste a good amount of money in these penalties. Without proper information the use of credit card is really dangerous about consumer’s future. Because of these credit cards debts they can become bankrupt I they failed to pay off there debts against credit cards on time. Sometimes the interest rates are too high that it becomes impossible for consumers to manage monthly payments and they start missing monthly payments and there debts keep on growing.

Credit card debt help is always available but it depends upon consumers that whether they try to get it or not.



By: Jerry Cole

I’ve heard of companies like cureadebt.com that will settle your credit card debts for 70% of the amount owed. I’ve also heard of government grants to pay unsecured debt(credit cards), but I don’t know where to get the info on them. I’m considering a second mortgage to pay these off with a lower interest rate. Thoughts?

We no longer use credit cards, so the balance only increases because of high interest rates.

What is the best solution for credit card debt?
I am way in over my head, I have 6 credit cards and I’m over $40,000 in debt. I have tried to take out a loan at the bank to consolidate but i got turned down. I need HELP!

I owe about $12,000 in credit card debt and I wanted to make that my year’s goal to pay it off, but a lot of the websites I find require that you own a home, or charge a huge interest for someone to negotiate with your creditors to bring down interest. Does anyone know of a good resource where I can just consolidate the debt and make one reasonable payment?

Credit Card Debt is the most profitable commodity in the world. There are over three hundred million credit cards with an average limit of $3000 collecting 70% to 85% interest monthly. Credit Card Debt is the catalyst that is producing the economic struggle in America today. Credit Card companies have issued more credit than the average consumer can handle.

Today many homeowners a large amount unsecured credit card debt that they struggle to pay every month. This debt usually has a  rate in the high teens making paying off the debt quickly a difficult task to accomplish. Reducing your monthly debt load by refinancing is a great option to eliminate your high rate credit card debt and roll it into a tax deductible loan. With today’s low rates this is almost a sure fire way to lower you monthly payments and improve your quality of life!

But what can you do if you have no equity in your home for a debt consolidation refinance? If you have good credit one option is to transfer balances over to low rate credit cards. By transferring your balances to lower rate cards you will take a larger bite out of your debt every month. However there are drawbacks to using low interest credit cards. If you miss even one payment your interest rate will in most cases default to the normal 18-20% interest rate.

Another drawback is many of these cards only offer periods of 6 months to 1 year for the introductory  rate so when the introductory rate expires you are back up to higher interest rates again. However if you look hard enough you should be able to find cards that offer 3.9-9.99% fixed for life on balance transfers. Use caution though because the same rules about late payments apply to these cards as well.

Another option if you have no equity is the 125% home equity loan. With these home equity loans you are allowed to borrow up to 125% of your homes equity. Even though they say 125% most of these programs are capped at a maximum loan amount of $50,000. A over equity loan will have a much higher interest rate then a normal home equity loan. The interest rate of a 125% equity loan is normally around 14% and is not tax deductible in most cases.

However a 14% interest rate may be lower then your credit cards interest rate and could possibly save you money every month. The major drawback to this loan is that you will not be able to sell your home for many years because you now owe more then it is worth and it will take years for your home to appreciate to a level where you will once again have equity.



By: Andrea D Johnson

There’s a difference between taking control of your finances and letting your finances take control of you. The results vary, of course, but when finances – particularly financing involving credit cards – are taking control over an individual, debt is the awful and too familiar end result. Yet, at the same time and conversely so, one of the most tangible financial issues anyone can easily take complete control of, conquer and even, dare I say it, pay off, despite popular belief, are substantial amounts of credit card debt.

Don’t Get Caught Up and Give Up

The worst thing a credit card indebted individual can do is get overwhelmed by their credit card debt, subsequently leaving it to sit and linger. This is major financial mistake number one; do not sit on credit card debt. You’re not a hen and your debt is not an egg. Leaving credit card debt to stay stagnant and hence, accrue interest, is blocking off a clear path to future life options, particularly ones calling for polished financial standing. Financial goals such as buying a car or even owning a home could be jeopardized if credit card debt is not dealt with immediately and in a well-done manner. Bad credit means difficulty for anyone seeking upcoming and monumental purchases.

Doing Well Means Getting Organized

Firstly, you must get your, well…stuff together. Despite the mess, gather all the credit card information and place it down on a table, a big, long table. You must then be prepared to tally the necessary information needed to see just how bad a credit card debt scenario is. Take note of balances due, the actual due dates and the payment amounts required (both minimum and higher payment options).

Factor in if you have multiple balances -like most individuals do- on different cards. What are the balances like? Are there a few smaller balances and one large balance, or vice versa? If so in either case, then you might be in need of some consolidating, simply to make some sort of headway on those due credit card payments.

Making headway on payments though, can be a curious event, simply because there are numerous options one can take. Regardless of which option is selected in the end, some progress is assuredly being made in lessening your debt.

Highest APR Balance Pay Off Option

This makes the most monetary sense, paying off the credit card balance with the interest rate which hurts the most, financially speaking. Take all your multiple balances and pay off the one with the highest APR rate first. Do this until the highest balance is paid off in full then move to the other lower interest rate balances and continue paying them off until each is erased from your financial history, not to mention, memory. Paying off balances this way will take some more money, but stick with it. A great rule of thumb to stick to is paying more than the minimum requirement, even doubling or tripling the amount (when your budget can. Holding strong to such a plan will completely eliminate credit card debt.

On The Other, More Budget-Inclined Hand

Paying off the lowest credit card balance is a great way to ease into paying off credit card debt. Doing this will take longer, yet will provide capability to gain financial endurance (not to mention responsibility), in this case, stamina, to pay off debt slowly but surely. Once the lowest balance is paid off, then it’s just a matter of moving onto the next lowest and so on. Think of numbers and figures here. You’ve got three balances, each varying in financial weight. One is $5,000, the second $2,500 and the third $750. Clearly the third amount is the best option, especially if money is tight and financial stamina is weak and in need of strengthening.



By: E.S. Cromwell