Resolve Credit Card Debt

You've probably heard the frightening statistic that the average American owes more than $ 8,000 in credit card debt. Fortunately, that statistic is completely accurate. These are real credit card information and debt statistics.

Average card debt Credit
The average credit card debt is actually about $ 2,200. This is still a lot of money when one considers that the income average is $ 48,600, but not an extreme figure.

However, only 45% of Americans have credit card debt. 23% of Americans do not even have credit cards. The remaining 32% pay their credit cards in full each month. 8.3% owed more than $ 9,000 in their credit cards.

If you carry a balance on their credit cards, can become one of the 32% who do not. Although it seems difficult with increases of food prices, the solution to cut expenses can make a real difference in their ability to pay the debt without really restrict your enjoyment of life.

Total Information Consumer Debt
You may be wondering how these statistics are derived. They are derived in part from the Survey Federal Reserve Consumer Finances, conducted every three years.

Since June 27, Americans had a total of 2.46 trillion dollars of consumer debt, but this figure includes mortgages, auto loans, student loans and other revolving debt. Revolving debt, which is usually the credit card debt, only 904 billion U.S. dollars. While this figure is still high, the figure is more likely devastating to hear in the news.

What Can You Do?
If you are a person with revolving debt, you may wonder how you becomes a person without it. It is not easy, but it can be done. The key is to learn to control your spending. American society does not easy because our economy is based on spending, but if you have the willpower to do what is right for your personal finances, you can.

There are three basic steps to control the use of credit cards:

  • Stop use for a month. See if you can afford all with cash in your pocket. The checks do not count. It must be hard cash. Once you actually see the money leaving your pocket, you will have a much better idea of your actual expenses. You'll also discover the cycle of money because it will not be able to spend the money that is not in your checking account.
    There are exceptions to this rule. For example, you can not pay their bills, rent, mortgage or cash. Use checks for your monthly bills but write them out and deduct them from your checkbook balance before withdrawing money cash to spend.
  • Reduce the cost of releasing more money. Consider the possibility of canceling or reducing cable energy conservation, and buy cheaper food. Instead of putting the economic savings in your pocket, use it to pay off debt, especially debt of the credit cards at high speed.

Avoid buying things you want, but do not actually need. Food is a necessity. Dinner at an expensive restaurant is not. Shoes for their children is a necessity. $ 200 designer shoes your child will grow out of three months are not. Transport is one need. Unless the height of a steep, unpaved road, a $ 40,000 SUV is not.

Impulse purchases are generally wants, not needs. Wait at least two weeks before buying anything. If you still want that after two weeks, could be a necessity, or simply be something you really want. If it's something you need to buy. If it's something you really want, buy only if you can pay cash without limiting their ability to pay debts or save for retirement. If you are still paying their credit cards, avoid buying things you want, no matter how much you love them.

Once you learn to control their costs and distinguish between needs and wants, you can pay the debt faster. Soon it will be one of 45% of Americans worth their credit cards each month, and is not contributing a cent to 904 billion U.S. dollars in revolving debt.

Source: target = "_blank" href = "http://www.bills.com/credit-card-debt-info/"> http://www.bills.com/credit-card-debt-info/

About the Author:

Justin has more than 5 years experience as a financial adviser, his key areas are loan consolidation, debt relief, mortgages etc.

Article Source: ArticlesBase.comCredit Card Debt Information and Help

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