Eliminate Credit Card Debt before it turns into a monster!

Is your credit card debt quickly getting out of hand?

With an average debt load of approximately $6000, spread out between roughly 4 major credit cards, with a typical interest rate of 17%, it is becoming more and more common for American households nation wide to be building an inescapable burden of debt.

Is it too late to eliminate your credit card debt?

In our opinion it is never too late to eliminate credit card debt, the question is, will you need our help or not? The unfortunate thing is that for many families, it may already be too late to pull the reins in on that debt, and it may not be long before it spirals completely out of control. Generally there are three stages of debt. The early warning stage, critical stage and finally crisis stage.

Do you need to eliminate credit card debt? Click here.

The Early Warning Stage
Sadly, when the average household is in this stage, debt is barely an afterthought. Payments are easy to make, and perhaps the overall amount of debt load seems so manageable that families are still willing to make some major purchases on their credit card. Typically, this stage occurs in the newly emerged household. Recently married couples who do not yet have children, and have just mortgaged a household and purchased only the barest necessities of living. Or, it happens to families who have up to this point been very careful of their credit card spending.

Regardless, most people in this phase have not yet experienced the later phases, because if they did, the warning bells would be ringing and they would put all their resources into making sure that this potential credit card beast is eliminated before it gets out of control.
Common signs of this phase are debt amounts totaling between $3000 - $5000 of straight debt, without a significant amount of interest built up, monthly payments being low enough and seemingly quite manageable, and no payments having been missed.

At this point, crippling credit card debt is avoidable. The debt way to eliminate credit card debt at this point is to focus your resources toward paying off this debt and not making any new purchases. Make much more than your monthly payments. Make your monthly payments and then near the end of the month, put as much disposable income towards those credit cards as you can. Wait until the end of the month just in case any emergencies arise, so that income can be redirected toward those emergencies if need be.

No matter how necessary it seems, avoid buying that second car, try to purchase any new appliances or electronics second hand to save money until that debt is paid off. Waiting a few months to make major purchases, can not only save you future stress, it can also save you money by avoiding compiling interest. Who wants to spend money on debt created by interest?

The Critical Stage
This is where most American families live their lives on a regular, accepted basis. Credit card debt is somewhere between $6000 and $15000. This household debt has been held for quite some time, and often a large majority of the overall debt is due to interest. To the card holders, it seems as if this debt will never go down, because they have been making payments for years (usually minimum) and yet it always stays at about the same level. In some cases, the debt seems to rise!

People get in to this situation typically because they did not see the early warning signs. They may or may not have missed a payment yet, and are still maintaining the minimum payments. However, many people who find themselves in this situation where only making minimum payments when they were in the early warning stages. This is a habit that is easy to get into. At this stage, making those minimum payments seem to take the tactical strategizing abilities of General George Patton!

Usually cardholders still have an excellent credit rating because they have still maintained their monthly payments and have not yet defaulted. This is a mixed blessing. It is good because nobody wants a bad credit rating, but it is bad because, credit providers see you as a money maker (for them) and will try to offer more credit cards to you. When your credit debt is already too high to make major purchases, the worst thing to have is the temptation to make a large purchase on a brand, spanking new, completely empty credit card. REMEMBER, credit cards are not income, DO NOT view them as such.

To eliminate credit card debt at this stage, takes some outside help. If you still have a good credit rating, perhaps a debt consolidation loan will help you. Click here to read more on these loans, and remember to shop around! The key at this point is to find a way to reduce your overall payments, and even though making only minimum payments will prolong the amount of time you are in debt ultimately resulting in paying more money on interest, it is better than defaulting on a payment and being faced with higher interest rates! Again, avoid making ANY purchases on your credit cards.

The Crisis Stage

This is the point where credit card debt has gotten so high that you can no longer make payments. An increasing amount of people look to bankruptcy as a way out, but in virtually every case this strategy will ultimately do more harm than good. Click here to read more on bankruptcy, and why it can be avoided. This is where the Credit Card Debt Consolidators strongly suggest you contact us to help eliminate your credit card debt.

Consulting with a Credit Card Debt Consolidators counselor is always free.

Contact here to find out how we can help eliminate your credit card debt.

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