Household Credit Card

  Household Credit Card  - Credit card debt elimination in 3 easy steps  - Apr 6, 2007  

The average credit card debt on American household is rising every year. The credit card debt statistics showed that in the year 2002 average credit card debt, on an American family having at least one credit card was roughly around $9000. No doubt, this problem is gaining epidemic proportion and threatens to rip off the economic and social fabric of the American society. The efforts to eliminate credit card debt can get a big boost if you follow a systematic approach. With the 3 easy steps listed below you can easily get out of credit card debt. Though, not easy in the beginning, this strategy will help you pay off credit card debt if you are willing to work for it.

1. You will eliminate credit card debt-- Make it a resolution

Put it everywhere, in writing. It could be your study, kitchen, toilets, your desktop wallpaper etc. The idea is to reinforce this thing, once you see it everywhere, your natural faculties will automatically work towards achieving it. If you are alone, who is suffering from this credit  card debt then it's ok, otherwise if you wish to slash the credit card debt collectively, everyone should agree to the task.

2.Reduce the number of credit cards, consolidate

Sit together, and think which credit cards you require, keep them, get rid of the rest. Ideally you should be having one, but diversity of activities in life demand more types of credit cards, so it should be a tradeoff between the requirements and the credit cards you have. If you have credit card debt from multiple cards, go for a credit card debt consolidation. The idea is to pay off credit card debt faster and in a more manageable way.  Don't relax and be sluggish with your credit card debt repayments.

3. Make sure that you spend less than what you earn

This is most important. If you are not able to live within your means you will be in debt- in one way or another. Budget out your finances and get rid of wasteful expenditure. Make weekly, monthly, quarterly and yearly goals. Don't complicate things while budgeting. It is easy to get carried away while doing this exercise and if you are planning in group make sure to take care of the sensitivities of your partners. The idea is not to create conflicts, but to synergize and work towards becoming credit card debt free.

Adhering to these simple steps might look easy, but it requires a good deal of honesty and sincerity. The rewards of following these three steps will show in your credit report and financial prosperity.

  Household Credit Card  - Credit card debt in USA: 3 Important reasons why it is getting out of control  - Jun 5, 2007  

The debt situation in USA is particularly grim. According to a study an average American owes about $10,000 in debt and that too at a whopping 14% interest rate. What are the most important things that lead a person to credit card debt? In this article we analyse few of them.

1. Overborrowing

Credit cards provide a very easy way to borrow money. Just a swipe and you are done. This ease drives impulsive buying and without any forethought a credit card holder goes on and on making purchases with his credit card, he doesn't ever worry that this credit card money is a debt and has to be repaid with interest.

2. Paying just the monthly minimum

Every credit card statement comes with a minimum payment amount mentioned in it. This is generally a percentage of the outstanding balance on the credit card subject to certain conditions. This is the minimum amount to be paid to the credit card company every month. The sad part is that people take it as the only thing to be done and continue with just the monthly minimum. If you are just paying the monthly minimums on your credit cards each month, a debt of $5000 will take you more than 30 years to repay and in this process you will have paid the credit card an interest of more than $5000. And if your credit card debt is $10,000 and you just pay the monthly minimum chances are good that you will never be able to repay your debt in a lifetime.

3. Multiple credit cards and repayment defaults

Average American household carries around 5 credit cards, which is more than their regular needs. What happens is that with multiple credit cards they falter on repayments and are slapped with a late payment fees, high interest rates and negative remarks on their credit history. This makes getting further credit very costly. To make the matter worse, some people get new credit cards at exorbitant interest rates to repay their existing credit card debt, and are seriously caught in the debt trap.

Credit card debt is growing at an alarming rate, the situation at the savings front is very grim and a crisis like the great depression is looming on American society.

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