When you think about your credit card debt what do you see in your mind’s eye? Do you see a big black cloud? Maybe it’s a big huge rock weighing you down or a pack of hyenas nipping at your heels? However you see your credit card debt, it’s probably not a pretty picture. According to one study I saw recently, Americans ran up about $48 billion in credit card debt just last year and the average credit card debt per indebted household is $15,587 as of June 30 of this year. Given the fact that this is just an average, you can imagine how much credit card debt some people are carrying–like $20,000 worth or more.
What to do about credit card debt
There are several different ways to deal with credit card debt. One of these is called the “snowball” technique. This is where you pay off the credit card with the highest interest rate first, then move on to the next and so forth. An alternative to this is to pay off the credit card with the smallest balance first so that you can feel you’ve made some progress before moving onto the next card. There is also a strategy called the “snowflake” solution, where every time you have some extra dollars in your pocket, you send it to your credit card companies to pay down your balance. All you need to find and send the credit card companies is $2.74 a day and you’ll have reduced your balances by $1000 at the end of a year.
Take advantage of a zero balance transfer offer
Several of the major credit card companies are currently offering what are called zero balance transfers. This is where you transfer balances from credit cards with high interest rates to one with a lower rate and then pay no interest for 6, 12 or even more months. This “timeout” gives you the ability to lower your credit card debt because everything you pay will go against your balance owed.
Consumer credit counseling
Another alternative is to go to a consumer credit counseling agency for help. Most of these agencies are nonprofits and offer their services free or for a very small fee. If you elect to do this, you will be assigned a debt counselor. He or she will go over all your finances and help you develop a payment plan. Your counselor will contact your credit card providers to negotiate lower interest rates and for them to accept your payment plan. Your debts will be consolidated in that when all your creditors sign off on your plan, you will be expected to write one check a month to the consumer credit counseling agency, which will then pay your creditors. The downside of this is that you will have to surrender your credit cards and be careful to not run up any new debts for the 5 years it will probably take you to complete your payment plan.
Debt consolidation loan
You could get rid of all that credit card debt with a debt consolidation loan. If you have a serious amount of credit card debt, you will probably have to get what’s called a “secured” loan. This is where you pledge an asset as collateral. In most cases that asset will be your house–in the form of a second mortgage or homeowners equity line of credit (HELOC). Whichever of these you choose you’ll be putting your house at risk because if you default on the loan, it can be reprocessed and you could end up out on the street.
Debt Consolidation USA style
We think the best way to handle credit card debt is to put our debt consolidation providers to work. They provide a simple 100% satisfaction guarantee. We’re so confident that we can help you achieve your goal of becoming debt-free in a reasonable time, that if you are ever unsatisfied with our recommended debt relief programs you can cancel at anytime without any penalties or fees.
For immediate help
For immediate help with your credit card debt, call our toll-free number. Or you can fill out the form at the top of this page for a free quote. Don’t get swallowed up by a sea of credit card debt. Contact us today.