Posted on 5/2/2010 - Filed under Credit Card Debt

If you have debt problems and are considering filing for bankruptcy, it’s important to understand all of your available options before making any decisions. If you take some time to look over your finances, you may find a way to avoid bankruptcy. Here’s how.

Sit down with someone you trust and talk about finances, for starters. Take an inventory of your income and expenses. Make careful note of what you owe and to whom. Ask at least two financial-savvy people for their advice before making any decisions.

Think twice about debt consolidation companies. While many firms will promise to help you get out of debt, some of them charge hefty fees. You’ll want to do all that you can to avoid high fees. So if you can work down your credit card balances on your own, it will cost you less.

Make a plan to get out of debt. Slash any items or monthly purchases that you can get by without. Look for ways to cut back on expenses and set goals to pay off your debts. By putting them as a priority, you’ll be able to focus on getting rid of debt and keeping it away.

Remember that it is a process. Just as you didn’t get into debt overnight, you won’t be out of the red in just a few days. It will take some time, but the benefits will be worthwhile. Pay off your credit card debts and then look for ways to avoid debt pitfalls in the future. You’ll find that many doors of opportunity open up when you do so.

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Posted on 2/3/2010 - Filed under Credit Card Debt

If you have credit card debt on a number of cards, plus other debts hanging over your head, it can be hard to keep track of exactly what you owe and to whom. That’s where debt consolidation companies come in. They offer to bring all of your debts to one place. You pay one bill each month, and that is used toward paying down the total amount you owe.

Some people like the simplicity of having all of their debts in one place. You may too. Before you sign up for one, however, check the following.

Fees. This is a big one. Some debt consolidation companies are legit and will charge reasonable fees, and others will charge too much to make it worth it. So find out what you’ll be paying in terms of fees before signing your name to anything.

What you need. Different debt consolidation companies offer different services, so you’ll want to make sure that what’s being offered is really something you need. If you have a number of balances on different credit cards, for instance, you may just want to transfer those balances to a new card.

Consulting services. A good consolidation company will provide you with a consultation to look over the debt you owe. It will help you set up a repayment plan, and also give you advice on how to keep from falling into debt in the future. If the company you’re looking at doesn’t provide all of this, keep shopping around. Your credit and your future are worth it.

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Posted on 12/10/2009 - Filed under Credit Card Debt

More Americans than ever are working hard to pay off debt, and if you want to do the same, you’ve come to the right place. Here are a few pointers to help you set up a system that will lead to a life free of credit card debt.

Look at your income. Just how much are you bringing in each month? Look at the amount you earn each month, when you get paid, and any extra income you might have coming your way.

Study your bills. After you calculate how much comes in, look at what goes out. Write down monthly expenses, from groceries to gas and utility bills, rent, and entertainment. What’s left?

Calculate credit card debt. If you’re carrying a balance on one of your cards, write down the amount on a piece of paper. Then figure out how much you can pay toward the balance each month. You’ll be able to estimate how long it will take to pay off the balance. If you have more than one credit card with a balance, focus on paying off the debts one at a time.

Work up a new budget. Chances are you’re anxious to get rid of any credit card debt you have. So make it a priority. Look at ways you can cut your other expenses and adjust your budget accordingly. When you have extra cash, use it toward paying off the debt rather than spending it on something else. Keep working at it and over time, you’ll get the balance to zero. You’ll feel great about being debt-free, and your credit score will reflect your new financial habits.

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Posted on 6/9/2009 - Filed under Credit Card Debt

News headlines are bringing up the topic of debt and credit cards on a regular basis. If you currently have problems with debt or with your credit card balance, now may be the right time to correct your situation. Here are three ways to get your debt under control now.

Look into the options. Things are changing in the credit industry, and this may mean that you have certain options that you didn’t have before. Call your representative and ask for help if you need to pay off a high balance or have lingering debt.

Be a good manager. Getting out of debt is easier to do with a solid plan. To set up a system that works for you, start by looking at the total amount that you owe. Then divide it into areas that you can focus on. Start by paying off the debts with the highest interest. Once you pay off one balance, move to the next one. Set aside time each week to look over your finances and try not to make quick decisions when it comes to buying new things.

Focus on the Future. Working your way out of debt can take time, even years. The key to getting out of it and staying out is sticking to a plan. Keep focused on a brighter credit future. Take charge of your finances and watch your credit score improve. In time, you’ll feel more in control of your finances and have the score to prove it.

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Posted on 2/13/2009 - Filed under Credit Card Debt

The bills that roll in at the beginning of the year can bring on big headaches. The holidays are over, but the debt racked up during them can linger on for months, or even years.

Credit card debt can be a tiring, seemingly endless cycle. But once you start tackling it, you can make it go away for good. Taking small steps is a key factor to getting out of debt. Here are a few to try:

Pay on time, every time. Each month, send in the minimum amount listed on the credit card statement. Pay on time, and you’ll avoid having to face late fees. If you can, pay more than the minimum amount on one of your cards. The extra cash will go toward the principal balance. You can chip away at one until it’s gone, and then focus your energies on the next high balance.

Plan out your purchases. Fancy shoes, dinner at a ritzy restaurant, a splurge in the electronic department…it all adds ups. Credit card debt can happen quickly; it only takes a few shopping sprees to bring in high balances. And when the shopping ends, the balances stay on. So before you whip out your card at the mall, take into consideration the consequences. If you can’t pay it off in a few months, put the item back on the shelf.

Get organized. Keep careful track of your monthly statements, and know how much you owe. Each month, take some time to sit down and pay all of your bills. Mark due dates on a calendar if you need help remembering them. By taking the time to keep your finances organized, you’ll be able to stay in the black during this year, and into the next.

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Posted on 1/1/2009 - Filed under Credit Card Debt

Did you put “paying off debt” on your list of New Year’s resolutions? If so, you’ll be like many other Americans who are trying to cut back on credit card debt this year. In order to make sure this is a resolution you can keep, follow these steps:

Know what you owe. It is very hard to get out of credit card debt if you don’t know the exact amount of debt you’re carrying. So sit down at the end of the month and look through your credit card statements. Pay attention to the balance on each one of your cards.

One at a time. If you have a balance on more than one credit card, don’t try paying them all off at once. Instead, choose one balance to start with. You might want a low one that you can pay off right away, or you may want to start with one that carries a high interest rate. Work to pay off the balance on that card, and then move on to the next one. (While doing this, keep making minimum payments on your other accounts.)

Follow a plan. Once you have chosen a balance to pay off, figure out how long it will take to get rid of it. An easy method is to double the minimum amount listed on the monthly statement. If you can pay off more, do so. Try to set up a timeline that will show how many months you’ll need to pay off the balance. If you can get rid of the debt in this time period, reward yourself for your wise credit card management.

Limit credit card use. While you pay off the balance of a card, try not to use the card for other purchases. Keep it in your desk drawer or a safe place in your home. If you don’t have it in your wallet when you shop, you’ll be less likely to use the card. Once you are debt-free, you can start using the card once again.

By following these steps, you’ll not only get out of credit card debt, you’ll also learn about wise money management. And that is real key to staying out of debt. So take some time to set up a plan and follow it. You’ll be able to end the year with less debt, or better yet, no debt at all.

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Posted on 12/13/2008 - Filed under Credit Card Debt

If you’ve fallen into credit card debt problems, you’ll find that there are many so-called debt counselors who are more than eager to help you out. Before you choose one, though, be sure to investigate them and their company thoroughly. Debt counselors can be involved in many scams,and they may drag you right down with them.

So who do you turn to when you have credit card debt problems? You have a number of options. You could sit down yourself and take a hard look at the numbers. Figure out how much you owe, and then set up a plan to pay it back.

If going solo seems overwhelming, consider asking a trusted friend with a financial background for help. They can help you get started on the right track, or point you to someone who can help. If you want to have a debt counselor help you, check out the person and the company they represent before you sign on to anything. If you see anything that makes you feel uncomfortable, look for a different option.

For some debt problems, you can even use credit cards to help you out. Look into balance transfer credit cards or those offered for people with poor credit. By taking it one smart step at a time, you’ll be able to work yourself out of debt and avoid scams at the same time.

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Posted on 11/17/2008 - Filed under Credit Card Debt

How much debt are you currently carrying? We may not like to talk about it, but it’s a topic that’s on many people’s minds today. The current credit crunch is causing more consumers to take a hard look at their debt.

And rightly so: many lenders are tightening their belts. You may be less eligible for credit if you’re carrying a lot of debt. So now is a good time to face your debt, especially any lingering credit card balances you have.

So what’s the best way to get out of credit card debt? Form a plan. Start by making a list of the different credit card balances you’re carrying. Then choose an account to tackle, and figure out how much you can put toward the balance each month.

The great thing about having a plan is that it will help you chip away at the debt over a long period of time. Some people see how much they owe and feel helpless – it seems like too much to pay off at once. And it probably is. You didn’t wake up one day to face a huge pile of debt (although it may seem like it). Credit card debt usually accumulates over a period of time.

Just as your credit card debt didn’t magically appear overnight, it won’t disappear with a simple wave of the wand. Put money toward it, month after month, and you’ll see it go down. As soon as you pay off one credit card balance completely, you can move on to another. Eventually, all of your accounts will hit zero.

By having a plan and thinking long-term, your finances will end up in good shape. Your credit score will improve, making you a good candidate for lenders. And you’ll be able to focus on things like investing, where you earn money in interest, rather than debt, where you have to pay interest fees each month.

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