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Credit Card Debt Advice

VIEWS: 9 PAGES: 5 is a consortium of like minded individuals that have faced down the demons of financial mayhem in our own lives and have determined to provide quality, honest, common sense help to those that find themselves in a similar debt situation as we once did. We know how it feels, we have been there. We believe that everyones goal should be to achieve a life free from all debt, but we realize that reality places us each in different financial stages. In some cases the thought of living debt free seems absurd and impossible when confronted on all sides by mounting bills and endless calls from credit agencies. In these circumstances we understand that the first step is confronting head on the realities of ones current finances before tackling more lofty goals, and we strive to find the best services and companies, the trusted resources, that have proven time and time again that they have the clients best interest in mind and can provide swift relief to those in need.

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									                 Credit Card Debt Advice - 3 Simple Steps To Success

      A credit card can throw your finances into a state similar to hell on earth.
Paying off what you owe, saving on interest, whether to pay the minimum or more,
sound credit card debt advice can help you make the right choices to achieve fast
relief. Your card debt can be one of the most difficult to pay off. Your cards likely
have high interest rates and paying minimums month after month makes no
headway, most especially if you are forced to live on them and continue making
purchases. However, there is no reason to despair. There are a number of different
steps that you can take to
help get you out of debt.

                                   1. Stop Reckless Spending

      Needs mentioning. Is vitally important, but obvious. Everyone knows that
you should spend less, so we will say no more on the matter.

                                   2. Manage Your Interest

      The best credit card debt advice that you will ever receive concerns the
interest rates on your balances.

      Regardless of how much money you are able to pay each month, if the

interest rate is too high you are throwing money down the toilet.

      Imagine it, a handful of hundred dollar bills in your hands before you, and
you are literally taking a lighter to the Benjamin's and burning them up.

      That is exactly what you are doing month to month if your interest rates are
ridiculously high (an all too common occurrence).

      If you are able to drop your interest rates, you will be able to pay more
towards the balance of what you owe. Every dollar you reduce in interest payments
is a dollar that pays off your debt rather than going to the credit card company for
the convenience of letting you borrow.

      When you look at these numbers over the course of several years of
payments, the savings are astounding. In addition, when you apply these savings to
the thousands and thousands of dollars of credit card balances you carry, from
month to month, it is shocking.

      Thus, the most important thing to do, after ending reckless spending of
course, is reduce your interest rates. If you are behind on your payments or over
your credit limit, some creditors may be willing to work with you and offer you
lower interest rates.

      However, they may close your account when they do this.

      They will note that the account was closed by the creditor on your credit

report which will have a potentially negative effect on your credit score. They may
also notate that the account is being paid under an arrangement.

      This can also negatively affect your credit score, but regardless of the rating
implicationgs it can still be a very effective way to get out of debt.

      If you do not want to have your credit score diminished, you may wish to try
different routes to lower your interest rates. Consolidation loans are one of the
most powerful ways to get out of debt.

      These loans will pay off all of your current debts and reorganize them into a
lower interest, lower cost loan. Then, you simply make one monthly payment to
the consolidation lender.

      The advantage is you will typically pay a much lower payment than your
credit cards required and more of your money will go towards paying down your
loan. Typically, these loans are set up on a term schedule which means that at the
end of the term, you will be debt free.

      If you take this route, it is very important that you do not make additional
purchases on your credit cards after they are paid off by the consolidation loan.
Ideally, if you can, you should leave the accounts open (it is beneficial to your
credit score), but you should cut up your cards and refrain from using them.

             3. Seek Every Means Necessary To Pay As Much As You Can

      If you cannot qualify for a consolidation loan, you should speak with your
friends or family members and ask them to help you. They do not have to give you
money. They only need to lend you their name. If they have good credit, they can
cosign the loan for you.

      They will not be responsible for the loan unless you default on your
payments but their cosigning will allow you to qualify for better financing terms
that you otherwise would be denied.

      The disadvantage is that if you default they will be responsible for making
the payments.

      It can be tricky to ask friends or family members for help, but it will help
you to get out of debt faster. Thus, it is advice worth considering. If you truly want
to convince them that you are serious and that you will not default on the loan, you
should draft a budget and show them how you plan to pay off your credit card

      The second most important piece of credit card debt advice that you will
receive concerns setting a budget. You should look carefully at how much money
you earn each month, and you should look at how much you spend.

      If possible, you should find areas where you can cut back. I know, its not
always possible, but if it is, do it. Any money saved should be instantly devoted to
your debt reduction plan. You should not get rid of all of your favorite things, but
you should carefully consider what you do not need.

      For instance, if you are paying huge fees for your children to play soccer,
you may be able to save that money. If you contact your friends or post a notice at
your children's school, you may be able to get together a group of kids for a pick-
up game once a week. Saving money for debt reduction is not impossible, but it
may            require            you          to           get           creative.

       If you follow the credit card debt advice that was outlined in this article,
you will be well on your way to becoming debt free. To recap, the first step is to
stop reckless spending, the second step is to lower your interest rates. The third
step is to send your creditors as much money as you can. These three simple steps
are all that you need to do. Throw your creative energies into your efforts and you
will be able to move mountains.

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