According to the Federal Reserve, Americans are drowning in debt with a record revolving credit balance of $975.2 million as of the end of 2007. This works out to around $11,000 to $12,000 in credit card debt for the average household in the United States, a pretty staggering total. Are you one of the millions of Americans struggling with debt on a monthly basis? Are you hiding it from a loved one or spouse scared of what he or she may say or just plain embarrassed? You’re not alone.
As many as one in five American households are either behind on credit card payments or possess at least one account in which they are over their limit. Living in this “penalty rate zone” of credit cards isn’t easy. But there are options available to the average consumer that can alleviate the stress of continued monthly credit delinquency. Consider the following five tips and start your journey on the road to financial security today:
Tip #1 - Consider a Budget: Do you know how much you spend each month? What is your average current credit card obligation? How many ‘essential expenses’ do you have? A car, rent or a mortgage payment, food, and loans, are considered essentials. Eating out, the new Disney movie and your local gym membership, are not essential. Track your spending and eliminate the fat, you may be shocked at your monthly savings.
Tip #2 - Cut up your Credit Cards: If you have a credit card with a balance that is more then your regular monthly salary, that’s a problem. Consider cutting up the card completely or putting it completely out of reach for the time being. Are you making the minimum payment? If so, that goes completely to interest and won’t move your outstanding balance much at all. Make sure you check out our free credit card calculator and see what increasing your monthly payment will mean to your future financial security.
Tip #3 - Debt Management Plans: It’s not easy to ask for help from any debt management or credit counseling company. But it may be the smartest decision you ever make. If you are over $3000 in credit card debt and need that debt paid off faster and cheaper then you ever thought possible, this may be the option for you. Read our detailed information on what is debt management and see if it may be right for you. Read the rest of this entry »