Credit Card Debt Informative - Getting out of debt!

Review by 23169 on 2007-01-12
Getting in debt is very easy to do. You are told you can't live with out a credit card and you must have one to "keep up with the Jones's", Now what do you do?

No Easy Way Out Of Credit Card Debt
By Mark Huffman

To get out of debt, financial experts suggest a four pronged approach:

• Analysis look at what you own, what interest rate you are paying, and when you would like to be able to retire the debt.

• Budget eliminating or reducing your debt will not happen without some sacrifice. Unless you come into a windfall of cash, the money to pay off the debt will have to come from your current cash flow. Look for places were you can save money from your current expenses and be disciplined about applying that savings toward paying off your debts.

• Be Bold It never hurts to ask for a little help. Call your credit card company and see if you can obtain a lower rate. This time of year lots of people shop for new cards, and credit card companies are mindful of that. If they refuse you, then become one of those people shopping for a lower rate card and transfer your balance.

• Raise CashLook for possessions that you can sell and generate cash. Use the cash to make a large payment on one of your credit cards.
Financial experts caution that there is no easy, painless way to get out of debt. For that reason, it is wise to be highly skeptical of the advertised claims of some so-called debt counselors. Numerous complaints to ConsumerAffairs.com tell of situations where paying large fees and following the advice of a debt counselor actually made the situation worse.

Read the rest of this report if you are in need of help and good luck getting out of debt!

Comments:10 Replies - Latest reply on 2007-05-10
Posted by Anonymous on 2007-01-12:
Lidman, a very 'two star worthy post' and very timely being bout time those Christmas bills come rolling in.

One thing I always suggest to the credit card junkies is to keep track of the finance charges and fees they pay each month. Multiply it by 12 then subtract it from your annual income.. Most don't really look at the amount of finance charges they pay month to month and the real cost of credit.
Posted by Anonymous on 2007-01-12:
Thank you Stew!
Posted by Anonymous on 2007-01-12:
da da da da da da, CHARGE!
Posted by CrazyRedHead on 2007-01-12:
What about if you debt isn't centered around credit cards but around medical bills? I have medical bills coming out the hiney. Out of 10 items on my credit report 8 is medical bills. I have been making payments on them but they just keep piling up. I have had garnishments from 2 of them, while making payments. I guess that I just wasn't sending them enough at once. I don't have any CC debt, although I have one small CC for emergencies when traveling.
Posted by Anonymous on 2007-01-12:
CrazyRedHead that is so wrong . There is quite a growing industry of scourge third party collectors buying medical bills then aggressively seeking garnishments. Medical bills should not be treated in anyway like other forms of voluntary debt. It really get's my BP up when I see wage garnishment orders sent to Sam's Club, Wal-Mart, Taco Bell, and other similar types of employers. This is one of the few issues I actively write my legislators about. It's not fair, not fair at all.
Posted by bill on 2007-01-12:
I agree with JayD that getting in debt is a choice we manke, but not when it comes to medical bills. I am sure CrazyRedHead didn't choose to have a medical emergancy.
Posted by Anonymous on 2007-01-12:
Exactly, Bill, and I think that's what Stew is saying.
Posted by Slimjim on 2007-01-12:
The term debt counselor can cover a vast area of services. Credit counseling, debt managing, debt negotiators, bankruptcy attorneys, etc. The good thing is with states passing new laws, the bad players in the debt assistance industry really can't operate anymore like they used to. Still, those looking for help should explore different choices from different firms to avoid getting a slick salesman.
Posted by Anonymous on 2007-01-13:
I used to be free of credit cards. I had an emergency to pay for repairs to my vehicle. I'm still trying to pay off the bills. I relized what I was up against but it was loose my vehicle cause I was strapped for cash or fix it and ride it out. Choice have to be made. Yes I do try to pay a little more each month to get the owed amount down sooner.
Posted by voiceoff on 2007-05-10:
How sad that on top of being sick, people have to worry about debt. Canada has hight taxes but at least medical is free. Not sure of the quality.
Higher interest rates than should be legally allowed are responsible for inability to pay, for many.

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