Credit Card Debt


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There are multiple facets to credit card debt. There are multiple myths surrounding these multiple
aspects that people tend to believe. These myths may hurt them as they work to pay off the debt

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Credit Card Debt

  1. 1. Credit Card Debt
  2. 2. Preface / Introduction@~~~>The LAST Time I Made This OFFER I was BURIED in calls so I am limiting this to theNEXT 5 PEOPLE ONLY CALL ME NOW - dont miss out! CALL ME NOW for your FREEInternet marketing consultation. $100 value. Let an expert show you RIGHT NOW how to profitonline every single day without leaving home. CALL ME -- Liz English -- NOW, (315) 668-1591.LIVE 24/7/365.
  3. 3. Table of Contents1. Credit Card Debt Facts2. Credit Card Debt Services - Are They Right For You
  4. 4. Credit Card DebtCredit Card Debt FactsThere are multiple facets to credit card debt. There are multiple myths surrounding these multipleaspects that people tend to believe. These myths may hurt them as they work to pay off their debt.Knowing the credit card debt facts, over these myths, will help you to better understand your debt.You can better understand what you need to do to pay off that debt. You can also better understandthe culture of debt in society, and how you must work to stay away from a growing trend.Interest Rates can ChangeInterest rates are not set in stone. While you may enjoy a small interest rate now, that interest ratecould jump without notice. While laws are being passed to change the rules regarding interest ratechanges, they may still be changed until these changes become law. By sticking with monthlypayments and by religiously paying down your debt, you can avoid these interest rate changes.Minimum Payments are Not EnoughMany people believe that the minimum payments that they are making will be enough to pay downtheir cards debt balance. They do not realize that, on many of their credit cards, the interest chargesper month can be larger than the minimum payments. If you are only paying the minimum paymentson your cards, you may still be gaining debt.Debt Continues to RiseWhen people are dealing with debt, they tend to go into more debt. People will often open up newcredit cards to help pay off their old credit cards. Eventually, they fail to realize that they have dugthemselves into a deeper hole. General credit card debt is rising by at least 1% per year. Debt is alsorising on the personal level. Slowly but surely, the average debt for Americans in debt is rising.According to a Nilson Report from April 2009, the average credit card debt for USA households hasjumped from $10,737 to $10,779; an increase of over $40 in less than a year, from 2007 to 2008.More People Go Into Debt Every DayAs a nation, America has almost $1 Trillion in credit card debt. This number continues to rise. In thepast year, 700,000 people in America have gained a credit card that did not previously have one.This means that over half of a million people went into credit card debt in the last year. Credit carddebt is an easy habit to fall into.Debt continues to rise for individuals, and for society as a whole. If you can, stay away fromcreating new debt as you work to overcome your current debt. With that being said, you should stillwork to increase your payments to avoid the issues that come from many of these credit card debtfacts. By knowing the truth behind these facts, however, you can take the best possible approach toyour financial situation. Copyright Elizabeth English - 2012 4 of 7
  5. 5. Credit Card DebtCredit Card Debt Services - Are They Right For YouThere are many credit card debt services available, most of which are designed to help you copewith your credit card debts and get them back under your control. Depending on your level of debt,you should check what kind of credit card debt services you require before you sign on for anyprogram.You should also be aware of the services you?ll be getting and how much you can expect to becharged for those services. Be sure that you?re applying for the right credit card debt services foryour individual situation.Credit Counseling ServicesFinancial credit counseling is perhaps the simplest form of credit card debt services. Certifiedcounselors are trained to take a look at your financial situation and then help you to find ways toadjust your current budget. They?ll also work with you as you learn how to take control of yourfinancial obligations in a responsible manner.In many cases, credit counseling could be the perfect solution for many people, because you?re notjust learning how to reduce your debt properly and effectively, but you?re also learning valuablefinancial literacy that can help you avoid getting into the same financial mess again in the future.Debt Consolidation ServicesMany debt consolidation companies offer credit card debt services in the form of consolidationloans. Their aim is to refinance your current credit card balances and roll them into a consolidationloan that is often charged at lower interest rates. Your old repayments stop and you only have oneeasy repayment to think about each month that is often much lower than your old payments.While it appears that all your credit cards have been paid out and your payments have been reduced,it?s important to look at your overall level of debt. Many people who apply for debt consolidationloans through credit card debt services find that they owe more than they did after the loan isestablished.This is usually because some of your old creditors may have added penalty interest or overdue feesto your balances, but it may also be because the company you?re working with may have also addedtheir fees to your debt balance. While you might feel as though you?re paying less each month, youmay have actually increased the amount you owe. Always check how the company you?re workingwith will be paid.Debt Negotiation ServicesCredit card debt services exist for those clients who haven?t made any payments on their creditcards for several months. If this sounds like you, then you might consider applying for a debtnegotiation program.Companies offering debt negotiation, or debt settlement, work with you to negotiate with yourcreditors on your behalf in an attempt to get the lender to settle for a smaller amount of money aspayment in full for your outstanding credit card debt balances. This works best on unsecured debtslike credit cards and you should be able to show the company that you haven?t made repayments forat least a couple of months.In many cases, credit card debt services using negotiation as a tool to reduce your debt can often getyour creditors to agree to accept 40-50% of the original debt amount. This can be a significant debtreduction for many people. Copyright Elizabeth English - 2012 5 of 7
  6. 6. Credit Card Debt Copyright Elizabeth English - 2012 6 of 7
  7. 7. Credit Card DebtResourceRepublished with authors permission by Elizabeth English Copyright Elizabeth English - 2012 7 of 7