Get Out Of Your Credit Card Debt
As of July 2008, US credit card debt totaled $962 billion! It is estimated that 1 in 20 American households owe more than $8,000 in bad credit debt. There are many ways to get rid of this debt. You may try to go it alone or you may enlist a debt reduction or credit counseling specialist. Some people take out home equity loans as a quick fix, while others declare bankruptcy to wipe the slate clean. It all just depends on your personal financial situation.
If you’re brave, then you can usually call and negotiate a repayment plan yourself to fix credit card arrears. Often, the first step toward regaining control is to assess how much money you make versus how much money you spend by listing your income sources, as well as your fixed expenses and variable expenses. Prioritize by unsecured credit card debt, mortgage payments and bills, then tack on food, health care, insurance and education. You may want to buy a computer software program like Quicken to keep track of expenses and bill payments. Next you can try contacting your creditors to work out a credit card debt payment plan.
To prevent credit card debt, you should first only take advantage of offers you actually need. There is no reason to ever have more than two or three credit cards. Having an unsecured credit card you never use is worse than just buying one thing per month and paying it off each month. To build your credit wisely, you may want to use a secured credit card, where you pay the bank your credit limit upfront and then only take out what you have put in, which is sort of like a debit card, only this one gets reported to all three credit bureaus to show your progress.
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