** Credit Card Debt Relief Tip of The Day **

Learn Debt Management and

Break Free of the Debt Chain

Do you owe the bank a huge amount of money? Are you finding it harder and harder each month to pay your bills? Have you borrowed money from friends and now they are wanting you to pay them back? You are no doubt in a debt chain. You and thousands of others are trapped in this debt chain. If you wish to break free from this chain, you need to be committed to changing your habits.

If your debt is spread across several accounts, you can reduce this debt by consolidating your bills. If you own two or more cell phone plans, why not put them all in one plan and take advantage of the savings? Go with the best plan according to your needs. Do the same with your TV. Why are you paying for the extra channels when you aren’t using them?

Unless it’s more than a mile to the store, ride a bike or walk instead of driving your car there. Know that your car burns more gas to run one mile than it does to run five miles or more because of the starts and stops. Gas prices are so high now, you can save yourself money when you don’t have to put the cost of gas on your credit card.

Consider buying in bulk those items you frequently use and need — paper towels, toilet paper rolls, soap bars, cleaning supplies, etc. Buying these items in bulk often comes out much cheaper than if you were to buy these household items individually.

If you go out for entertainment every week, consider cutting back to just two times a month. And when you do go out, allocate how much to spend and then stick to that budget.

Getting into the mindset of only spending what you can afford, leaving enough left over to make extra payments (above your minimum payment) to the credit card companies is critical to reaching the light at the end of the tunnel of your debt.

** Credit Card Debt Relief Tip of The Day **

The Easiest Way to Get Out of Credit Card Debt?

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Thousands of Americans have gotten out of credit card debt, and that may include yourself. The only way to get out of credit card debt is to do more than just paying the required minimum payments each month. You don’t have to do a lot more, though, beyond picking a monthly payment level, and never lowering it. Consider the following example of how you can get out of credit card debt.

A Credit Card Debt

Payment Case Study…

Let’s look at Amy’s situation. She has been trying to pay off her credit card debt for awhile but she isn’t making any progress. According to Amy’s credit card statement, the amount she owes is around $5,200 and her interest rate is 18%. The minimum payment is based on either 3.5% of the balance or $10, whatever is the highest. She is like a lot of people who do not really understand their finances and believe that not using the card anymore and paying the minimum amount each month would eventually get her out of debt.

Here’s the Truth

Let’s assume Amy is not charging on this credit card anymore and she is paying just the amount required by the credit card company based on the way it calculates the minimum payment amount each month. If Amy does this, she will not pay the debt off for 181 months and the amount of interest she will pay will be around $3,700 when she is done. That means 15 years later and $8,900 poorer, Amy will have paid off the $5,200 of credit card debt. That is crazy! You can see why she feels like she is not making any progress on reducing her credit card debt this way.

A Better Approach

There is a simple way to get out of debt faster. Amy’s minimum payment is currently around $180.00 and she is able to pay this easily. If she keeps paying $180 every month until the debt is paid off instead of lowering her payment to match the required minimum as it goes down, she will be much better off. Doing so will reduce the amount of time needed to pay the credit card off to 43 months from 181 months. It will also lower the total interest she ends up paying to around $1,600, which means she will save more than $2,100 of her hard earned money.

She Can Do More!

If Amy really wants to eliminate credit card debt, she should raise the new minimum payment that she is going to continue to pay. If she decides to pay $18 more each month, her monthly payment would be around $200. That would mean she would pay the debt off in 34 months, not 181 months and the amount of interest she would pay would decrease by $2,300.00.

She could increase her monthly payment by $68 to around $250 every month, which would mean the debt would be paid off in 26 months, not 181 months and she would decrease her total interest paid by $2,600. That is a big savings and the debt would be paid off a lot faster.

In order to make a big dent in the credit card debt in a short time, Amy could pay double the minimum payment she is going to stick with until the debt is paid off. This is great if she can afford to do it. If she paid about $360 every month, her credit card debt would be gone in just 17 months. That is less than 2 years!

Summing It All Up

You have a lot of options when it comes to eliminating credit card debt but the method described above is fast and easy and will make a big difference. Anyone can use this method of credit card debt elimination to get his finances back in order. It’s easy! Just don’t charge on your credit cards anymore and pay the minimum payment you have now until the debt is paid in full. Every month you will be paying down more and more principle on your debt and your debt will be gone before you know it.

** Credit Card Debt Relief Tip of The Day **

How to Reduce Credit Card Debt …Aggressively

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In reducing your credit card debt problem, you can fight back and regain control of your financial situation. The first thing you need to do is take a really close look at your current situation. Because of all the anxiety you have about your finances, it can become easy for you to lose perspective.

If Your Credit Card

Debt Problem is

Relatively Small…

For instance, it should be a big deal to you when you miss a credit card payment and you get a letter from your credit card company. After all, this CAN negatively affect your shorter term credit score, so you never want to miss a payment. However, in the overall scheme of things, you can easily rectify this problem: call up your credit card company, explain your situation, and see if both of you can come up with a solution to the problem. Your credit card company may lower your interest rate or your minimum amount due each month while you are trying to get your financial situation straightened out. As long as you have a good track record, the credit card company may be willing to cut you some slack.

If you are struggling to meet your financial obligations to creditors, contact them right away. You creditors may be able to help you. They can restructure your debt, draw up a new repayment plan for you, get the penalty charges rescinded, or some other solution.

If Your Debt Problem is More Serious,

Consider a Debt Consolidation Loan

If you have a more serious debt issue, one option to consider is a consolidation loan. While it isn’t really a good idea to take out additional loans when you are already having a hard time with your current debts, a consolidation loan may help clear out your debt problems. If you decide to go with this debt solution, speak with a reputable debt consolidation company. If they think a debt consolidation loan is not a good option for you, they will let you know and not lend to you even if they are a consolidation loan provider.

…Or Talk to a Professional Debt Counselor

If debt consolidation isn’t a viable option for you because you have poor credit or you don’t have collateral, you have other debt solution options available. It’s a good idea to see a debt advisor or debt counselor who works at a debt handling company or non-profit organization. A debt counselor can help you explore your options and find ways as to how you can improve your situation.

** Credit Card Debt Relief Tip of The Day **

Rising Credit Card Debt Means Rising

Anxiety for Many

Huge debt is one of the biggest sources of stress and anxiety. But you have plenty of company because millions of people today have huge debts that they can’t seem to get out of. If you are experiencing debt problems right now, it may be that your debts have gotten out of hand because the amounts you have to pay every month are getting to big for you to handle.

In some cases, people get buried in debt because their financial circumstances change, they lose their jobs, the sole provider dies, or they incur huge medical expenses. Regardless, they are now unable to manage the debts they have that there were able to repay rather successfully before.

It’s Hard to Enjoy Life

When Swimming in Debt

If you are in a huge debt situation, you are likely feeling that gnawing fear and you can hardly enjoy life because you are always thinking about the debt. The mere ringing of the phone can send you in a cold sweat because it could be one of your creditors wanting to “discuss” your situation. You may even dread and stop opening your mail because you’re afraid of reading bad news regarding your debts.

It is very tempting to lock yourself up in your room, just curl up in a ball and wish your debt problems will go disappear. However, taking this approach never works. No matter how bad your debt situation, the only way you can start getting out of it is if you take steps towards taking back control of your debt. If you continue to ignore or hide away from your debt problems, your problem is only going to get worse.

Credit card debt is something that is widely discussed. However, there is one aspect of credit card debt that is often ignored: credit card stress. Credit card debt can be a source of great stress for many and can adversely affect your life if you allow it.

It can be tough to not feel the stress of credit card debt, but the key is in learning how to effectively deal with the stress. Stress isn’t any better than an addiction. It’s always looming. It can bring you down, and even make it difficult for you to lead the life you want to lead. If you can recognize the signs of credit card debt related stress, you will be able to deal with it effectively.

What are the Symptoms?

Some of the more common symptoms of stress are inability to sleep, headaches, irritability, feelings of depression, forgetfulness, and inability to concentrate or focus. If you are unsure if any or some of these symptoms are stress related or not, it’s a good idea to see your doctor about it.

Who Experiences Stress?

Nearly everyone who has debts experience stress. In fact, millions of days off work annually is blamed on debt. Debt has also been identified as one of the leading causes of suicide. A large portion of people who are in debt are students, college graduates, and newlyweds.

The average American owes several thousands in debt. Many owe hundreds of thousands of dollars in debt. If you think you’re in a bad debt situation, chances are there are thousands of others that are in worse situations than you.

Dealing with Debt Related Stress

Many people would rather not talk about their stress, especially if it is caused by their debt. They try to put up a happy front even to their family members and closest friends. They hide their stress and their debt problem because they are embarrassed and worried about being viewed as a failure. However, this is not a healthy way to deal with debt related stress.

It can only make you even more stressed, particularly if you are trying to hide it from your spouse, the one person whom you can turn to for support.

Find two people to help you deal with stress. Find one person who can give you advice and another person can be your personal counselor. The first one can be a professional in debt and financial matters, while the second person can be a psychologist or psychiatrist who can help you sort through the mental and emotional effects of your debt problem.

Come up with a solid plan that you can follow to help you get out of debt and become better at managing your finances. Figure out exactly the extent of your debt. Start following a budget. Identify the unnecessary expenses and try to pay off the debt with the highest interest and work your way down. Stick to your plan and you will find yourself eventually out of debt. Be persistent, patient, and disciplined.

Watch for my next post about how to aggressively tackle your credit card debt problems……….

(For now, allow youself a little levity about your debt by watching the videos on the following two pages: Here and Here.)