Want to consolidate debt?

Credit card debt and other types of debt are a serious problem in the United States. Studies and statistics show that the average household has more than $8,000 in credit card debt. This also shows that 43% of U.S. families spend more than earn – a staggering $1.22 spent for each dollar earned. I am sure you are familiar with someone telling you to “Google it” when you want to search for or know something. That phrase is probably just as popular as “charge it” has become.

So what can you do?
You can start spending less to start off. Spending less on things you don’t really need and paying off more than the minimum payment is a great idea – it should even be required. One of the most recommended solutions to getting out of credit card debt besides seeking a debt consolidator, is to cut up your credit cards and not use them again. Then each month when the bill comes, pay off as much as you can. When your debt is paid off, close your account and cancel the card. Now you won’t be tempted to spend more than you can afford like the other half of the U.S. population.

Another important step to take is to educate yourself as much as possible about debt consolidaion, credit consolidation, saving your money, and how to get out of debt. If you continue to expand your knowledge and learn ways to climb out of the pit of debt, then you can do it. Set up a plan or calendar for when you want your debt to be paid off and have everything settled with a zero balance on it.

Here is another issue – the average person has 3 bank credit cards, 4 retail credit cards, and a debt card. Elimate as many of these as you can to reduce your debt and help your credit score out.

Pay off your bills in full as they arrive if you are going to use a credit card! I know a lot of people like to use their credit cards because of the “rewards” but those rewards are going to be useless to you if you have $5,000 worth of debt and an interest rate of 18.7% and can’t pay off your bill.

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One Response to Want to consolidate debt?

  1. Mike Michalowicz June 19, 2008 at 9:44 am #

    The two greatest tips you list are:

    1. “start spending less to start off”
    2. “cut up your credit cards”

    The third… actually do it!

    When I started my second company I buried myself in debt to grow it. Tough lesson to learn. Now I consistently spend less than I make and have years of saving. Live within your means and you will be financially secure and happy. Unfortunately most people live beyond their means and are a financial wreck and constantly stressed.

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