Dealing With Credit Card Debt

file00015119633Is your credit card debt slowly spiraling out of control? With mounting fees and compounding interest, it’s easy to feel like there’s no way out of this troublesome and stressful situation. Thankfully, though, credit card help is available to those who are drowning in a sea of ever-lasting debt.

Credit card debt is an ever-growing problem here in the United States. According to recent study, it’s believed card holders in the United States alone owe around 600 billion dollars in debt. This number is simply staggering, especially when you look at the nation with the second highest credit card debt, the United Kingdom. Their debt is only estimated to be around 70 billion pounds.

It’s easy to feel overwhelmed when looking your debt. After all, no one wants a reminder of how badly they are in debt. However, credit card help can get you back on the right track to financial freedom, and the first step in doing so is to take a look at your debt. Get out all of your credit card statements from the past year and analyze how much debt you have, what you’re paying on it, and how long it will take to pay off if you continue to pay at your current rate.

One of the key components to receiving credit card help is budgeting. This means cutting out all of those unnecessary expenses like going out to eat, drinking at bars, sports and concert tickets, etc. While you might be able to budget in your head, you should write it all down in front of you so you can see the numbers first hand. Determine how much you approximately spend per month and start cutting out things that aren’t essential. Depending on your lifestyle and income, budgeting could save you 60% or more per month, and that’s money that could go towards paying off a credit card.

You have to be smart when paying off your credit cards. Avoid those nasty $40 late fees by paying on time and always focus on paying off your card with the highest interest first. If you have several credit cards, make the minimum payments on all but one, the highest interest card. For this card, pay as much as you can per month using any extra income you have.

If budgeting still isn’t getting you any closer to paying off your debt, you may want to consider counseling for credit card help. There are several not-for-profit organizations which help consumers reduce and eliminate their credit card debt. They will sit down with you and discuss your debt situation, income and spending habits. If all else fails, they may suggest filing for bankruptcy. Although, bankruptcy should only be considered as a last resort.

You don’t have to live your life in a sea of credit card debt. Through smart spending, budgeting and focusing on one card at a time, you’ll be on your way to having them paid off. While it may seem like there isn’t an end in sight, once you start making progress on your cards your debt will slowly drop and the light at the end of the tunnel will show itself.

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