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Get Rid of High Interest Credit Card Debt Now

Debt blogger

Credit card debt is spiraling out of control and now accounts for $1 trillion worth of US consumer debt alone, so how can this debt be tackled. Firstly, the use of credit cards must be stemmed; millions of Americans are using their cards to pay for groceries and household expenses and treat their card as their wallet rather than a source of emergency funds. The credit card companies have been prolific in their encouragement of this type of card use and the end result has been that many Americans are paying minimum payments every month and will never clear their credit card balance.

Personally I don’t like the idea of paying $100 for a 50c can of pineapple chunks, sounds like an exaggeration doesn’t it? But, the truth of the matter is that you will eventually pay well over the odds if you do not clear your credit card balance in full.

If you are one of the millions of Americans facing an uncertain future because of potential employment issues or the economic situation then it is probably wise to look into methods to reduce your outgoings and gain control over your credit card debt. One of the best methods of doing this is to consolidate credit debt by applying for one of the many consolidation products currently available.

Debt consolidation companies offer loans that will normally equate to the sum of your total debt therefore allowing all of your debts to be paid off and leaving you with just one loan repayment a month to worry about. The end benefits of credit card consolidation are control and much lower interest rates.

There are methods however, that the financial institutions do not want the general population knowing and using about, as it would cause them to lose millions of dollars every year in unpaid interest. These methods work brilliantly when used with a consolidation loan and are both legal and ethical and will allow you to pay your debt off in a much shorter period of time, so before applying for a consolidation loan you really need to check these methods out.

You could also look into applying for a piece of the $10 billion bail out fund that the US government has provided to help those in debt. If you visit you should be able to acquire the information required to apply for a grant; the secret to getting these grants is perseverance, if you get turned down, don’t worry, keep trying until your grant application has been approved.

Obama Giving Away Government Grants To Help Americans Fight Debt – You Can Pay Your Credit Card Bill

Debt blogger

Government grants are one of the reliable sources of debt relief options. These grant programs are tailored masterstroke to offer debt relief aid. They are appropriate for people in severe debt and serve the people with financial assistance if they are truly looking to pay off the debts and to get relieved.

The grants offered by the government are not well-known as debt consolidation loans. People consider the grants to be another loan that has to be repaid. In reality, the amazing thing of these funds is that you can receive it, clear your debts and need not return the amount. However, before applying for the grant, an applicant should understand certain things.

The government grant is a gift coming as assistance to clear your debts. This has certain obligations and expectations from the receiver. The receiver of this grant is expected to clear the obligations for the amount received.

These grants are issued to individuals as scholarship grant. This is a contrast to the scholarship loan that has to be repaid. The scholarship grant does not demand the money back. Your obligation after taking this grant is to produce the academic progress reports to the government.

Another greatest advantage is that this money is interest free and taxable free. They also do not ask you to produce security deposits. Even a person with bad credit history or a bankrupt can apply, provided you are above 18 years, a US citizen and a taxpayer.

There are numerous types of programs to assist individuals and businesses. These grants are given for higher education, clearing health care bills, consolidating personal debts and to also start a new business by clearing any earlier debts.

The government agency certainly gives money to the needy by ensuring that it reaches the right people. They ascertain your current income, financial situation, monthly debt payment and total outstanding debt and then qualify the grant. On meeting the requirements you certainly receive the funds to pay off the debt than filing as bankrupt. These grants are true gifts that are given to perk up the quality of life.

Debt Management How Does it Work

Debt blogger

What is debt? Sounds like a dumb question? If it was would so many people be getting debt wrong? Debt is an amount that you borrow which you must pay back over a period of time with interest added. So it does sound simple but it is actually much more complicated than that due largely to how we handle debt.

A lot of people have gotten into debt and are unable to get themselves out. That is why we are seeing the astronomical rise in filings for bankruptcy. So much so that the US govt eventually had to pass a law that made it harder to file for bankruptcy, or effectively made it more difficult for you to get out of debt.

There is still good news. Its not easy, its not fun or even quick. But it will get you out of debt if you are prepared to undertake careful planning, hard work and patience.

The first thing is to recognize what is good debt, or financially sound debt, and what is bad debt. There are a few points to what determines a good or bad debt. If the debt is because of an asset creation, like a home loan, it is a good debt. Alternatively, if ANY debt is something you cant afford, then it is a bad debt. Bad debt is credit card debt or anything that you have used to buy luxury items. Bad debt is loan advances or anything that takes more in value that the item gives.

Therefore its simple, first categorize your debts and start paying off the highest interest bearing debts first. Store your credit cards in a locker at the bank so you will only ever use them for a real emergency.

Make more than the minimum payment on your credit card otherwise it will be decades before you pay them off and end up paying more than 4 times the value of the item you originally bought.

You may want to consider a second job to help you pay back your debt faster. You could see if you have anything to sell. It is likely that you are in this situation because you spend too much and dont save enough so immediately reverse this situation.

Understanding Credit Card Debt Settlement

Debt blogger

Excessive usage of credit cards can ruin your life and put you into deep financial trouble. The best way to manage your finances is to keep your credit card outstanding low and if they are high, opt for credit card debt settlement. According to a study conducted by Equifax, a credit report agency, credit card debt burden of some of the US households is as high as 17% of their income and this does not cover data related to store specific credit cards.

Need for Credit Card Debt Settlement
Credit card debt settlement is the best way to get rid of your mounting credit card debt and improve your finances. Tempting advertisements and credit cards by the various issuers encourage us to use our credit cards quite frequently even for smallest of purchases. However, what we do not realize or think about is the exorbitant cost of doing so. It is a vicious cycle, wherein you borrow without thinking and then struggle to deal with late payments, heavy interest charges and penalties.

The ideal way to deal with credit card debt is get rid of it. If you have the resources, pay it off. But if you are not in a position to do so and are on the verge of declaring bankruptcy, take the help of a professional debt settlement company. The reason why a credit card company would agree to settle your debt for a lesser amount is the fear of getting back nothing if you declare bankruptcy. So, the best way to settle your payments is to negotiate with the lender for waiver of a portion of the outstanding amount.

Benefits of Credit Card Debt Settlement
Credit card debt settlement allows you to ethically settle your debts and avoid bankruptcy. On the other hand, credit card companies get a proportion of their money back, which is better than getting nothing. A settlement company generally acts as the negotiator between the credit card holder and the credit card company. But before you decide to authorize a settlement company to negotiate on your behalf, ensure that it is authorized to do so and has a good reputation.

Credit card debt settlement will have a negative impact on your credit score since you have chosen to break the original terms of your contract with the credit card company. So, you should only opt for this option if you are on the verge of bankruptcy or have been threatened with legal action or both.