Do you need a Debt Consolidation Loan?
A New Year will be upon us soon and many Americans are looking for options to put their bills behind them and make a fresh start. Debt consolidation is one path to fewer credit card statements.
Browse through our articles and see what works best for you. You could be better off with a debt consolidation loan, a home equity loan, or just a service to help you get your bills organized and paid in one lump sum.
Credit Card Debt Elimination
Many people today struggle with paying off their credit cards; did you know that in the United States, there is currently 560 billion dollars in outstanding credit card debt? This is up from 292 billion dollars in 1992, and way up from a comparatively tiny 50 billion dollars in 1980. Due in part to this heavy debt load, personal bankruptcy rates rocketed to 1.4 million in 1998, almost ten times the rate during the Great Depression. This is why credit card debt elimination is fast becoming a national issue.
If you have several credit cards to pay off each month, you may feel like you're drowning in debt. You're paying interest on each card. And, if you can't afford to pay each one every month, you're facing late charges too. With these factors in place, you may not be able to pay off your credit card debt in a reasonable amount of time. In fact, you may simply be running in place--staving off interest instead of paying off the principal. And worse, because your cash is going to your credit cards, you're probably going further into debt to pay your living expenses.
But there is a way for you to break the cycle, and start eliminating your credit card debt today. There are credit counseling services available that can take stock of your situation. Based on your income, expenses, and debts, your counselor can help you create a monthly budget. He or she can also help your consolidate your credit card debt--combining seven or eight debts into one easy payment each month. That means your interest is consolidated, too.
Break Free of Credit Card Debt
Do-It-Yourself Debt Settlement
If you want to get out from under the weight of your debt, you can do something about it. Some people prefer to hire professional debt consolidation companies, but you can settle your debt on your own with a little persistence. One of the first things you need to do to clean up your debt is to assess the situation.
You must take a long hard look at your bills, monthly expenses, and cost of living fees. At this point, it's also a good idea to take a look at areas where you might be able to cut back on your spending. If you're completely honest about your spending, you may be surprised to find out how much money you waste every month.
Once you analyze your debt, it's time to make a payment plan. Many people make the mistake of thinking they can pay off their debt by making minimum monthly payments. If you want to get rid of your debt for good, you need to pay off at least 50 percent of the balance as soon as possible. Once you start to get your debt under control, it's important to develop a healthy new attitude toward credit card usage. The last thing you want to do is pay off your debt, only to create a whole new mess thanks to excessive spending or negligent credit card management.
Debt Consolidation Articles