Managing Debt in a Credit Card World

A sad but true fact about people in the United States is that they are piling up more and more debt every day. Whether it is mortgage loans, credit cards, or any other kind of indebtedness, more and more people are staggering under the weight of unmanageable debt. Most of them have no clue how they got into this predicament. Even more perplexing to them is how they’re going to start digging themselves out of the financial hole they’ve fallen into.

If you’ve ever been faced with a pile of bills you’re unable to pay, you know the feelings of panic that set in. Creditors start hounding you day and night, and even small payments do little to assuage the feeding frenzy they’ve launched against you. True, you should be paying these bills, but if you can’t, you can’t. As the old saying goes, you can’t get blood out of a turnip, and you definitely can’t get money out of an empty bank account.

Maybe you’ve already tried everything you can think of. You’re working two or even three jobs, trying to make enough extra money to start decreasing your debt. However, by the time you pay the babysitter, your income is already half gone. Then there are high gas prices which make your commutes to these jobs more and more expensive. At the grocery store, you can’t even walk in the door and buy a few items without running up a $100 tab, because grocery prices have risen so rapidly. But the welfare of your family has to be your top priority, and few parents are willing to watch their children go hungry just so that they can keep hostile creditors happy.

The debt management industry has been booming in recent years. So many people are in this precarious financial situation, and all of them are looking for assistance to get themselves out of debt. Unfortunately, not all of the debt management companies that have cropped up are honest and actually help their clients become debt free. As with shysters everywhere, some of the people who promise to help you are actually sharks circling a sinking ship, and they hope to relieve you of whatever cash you still have available. You have to be careful when choosing this route.

The best way for you to manage your debts is by learning how to better handle your own finances and not to trust in others to do it for you. First you need to realize that you aren’t alone. Approximately 78% of all Baby Boomers are seriously in debt at a time when they are nearing retirement and should be debt free. They still owe for their homes and cars, and many of them are deep in credit card debt. This didn’t happen to their parents’ generation, so why is it happening to them? And why has it happened to you?

Being in debt isn’t the smartest thing a person can do, but it has come to be the norm in today’s world. If you want to earn back your financial freedom, it’s time for you to start educating yourself about the best ways of getting yourself out of debt and starting to save for the future. You can live on what you earn, but it may not be easy. Take a look at your lifestyle. What things that you consider a part of your life would your grandmother have considered a luxury?

Values have changed over the years, but our pocketbooks and wallets haven’t kept up with the trends in spending, and that has created the financial mess so many people feel they can’t do anything about. They’re wrong, however. They can do something about it with a little hard work, and so can you. Isn’t it time you gave it a try?

How to Consolidate Your Bills and Your Credit Card Debt

You can consolidate many debts into one credit debt consolidation loan.  College loans, credit cards, bills, personal loans – All of these can be wrapped up into one consolidating loan which may offer you the massive benefit of a lower interest rate and only having one loan to pay.

If you are wanting to complete a bills consolidation with a credit card debt you will be required to offer the bank security or collateral such as a larger asset that you own.  If you are able to do this then the interest rate will be quite low.  This is because the bank has offset it’s risk by having the opportunity to foreclose on your property if you do not pay your debt to them.

Some people get caught in the trap of having many credit cards and using all of those cards to their limits.  This way of spending is quite dangerous because the banks place high interest rates on credit cards.  The reason for this is that credit cards are not secured against any collateral so the banks see credit cards as a riskier form of debt. 

You can consolidate debt loans, which takes all of those separate credit card debts and rolls them into one large loan.  Banks will often offer credit card holders to roll their credit card debts into one loan at a short-term discounted rate.  It may look appealing to be offered interest free for 6 months, but beware – when that 6 months is over, you will be paying a high interest rate again.  If you have an asset such as a home to secure a loan against, it would be better to approach banks and ask for a much lower interest rate loan secured against your home.

Once you perform a credit card loan consolidation [], it is time to reduce your spending and make sure that your credit cards don’t get out of control again.  If you spend more than you earn, you will potentially be putting your home or other assets at risk and you will face consolidation bankruptcy.

The easiest way to consolidate debt is to know what your budget is, stick to that budget and make it a priority to pay your debts off first before buying yourself anything non-essential.  If you are tough on yourself for a while, the rewards will be great when you don’t have debt and you have extra cash to spend that in the past you spent on making interest repayments.

Consolidating credit card and bills can definitely provide you with a simple solution to managing your debts going forward.  With a little planning, you will be able to use this credit debt consolidation loan to improve your financial position and give you financial freedom.

Good luck with your credit consolidation loan!

Emergency Cash Advance Lenders Do Not Follow Credit Card Aggressive Tactics

Using a cash advance to relieve financial emergencies is the basis to why short-term loans are so popular. The loan is for a few hundred dollars, it gets deposited quickly and the payoff is meant to keep the borrower form falling into more long-term debt. The harsh part of these short-term loans is that if the full payoff is not completed on the original due date, there is high interest applied to any remaining balance. As horribly as this interest affects people’s monthly expenses, a cash advance lender continues to grow in popularity. The need for emergency cash and the will to spend more, will keep third party money opportunities profitable.

Long-term revolving debt offers fast assistance for emergencies which a credit card is accepted as payment. If you really think about most credit card balances, the majority of debt is created by consumption rather than emergency solutions. The intention of having a credit card may not have been to spend more; but for many Americans, the temptation to use the cards for non-emergency purchases has made household debt an exuberant figure. Do credit card companies perform practices which enforce irresponsible spending?

I can’t answer that question in a professional manner, but I can give my response to it as it relates to my own personal situation. Credit card companies tend to look at more than just your credit history to make decisions pertaining to your accounts which will coincidentally affect their profits.

*I have been working diligently at paying down my debt. I found it very interesting that even though I am still facing a deep debt pile, one of my creditors recently raised my credit limit. Are they trying to take advantage of all my hard work in hopes that I will be tempted to make a very large purchase or maybe take my family on a well-deserved vacation? I guess I have fallen into the “good risk” category and might see more offers coming in the mail soon. Now I will definitely need will power to keep myself on the same path to free myself of debt.

*Offers to spend more for enticing incentives offered by credit card companies keep me in the “highly profitable” category. Look how much money these companies are earning from me as I whittle away at my debt each month. Of course I have to use one now and then as unexpected payments come along. I know my paycheck will not support a cash advance, so I choose to use credit cards instead. I know I am lucky to continue to have credit opportunities as I struggle with debt.

*Creditors will look for “bad risk” borrowers, afraid that a new line of credit may make the person more apt to apply for bankruptcy. With all these offers I have been getting in the mail, I applied for a “pre-approved” credit line in order to transfer some debt to a zero interest promotion. My rejection letter came quickly with the excuse that my high debt to income ratio does not support a new line of credit. Ouch! So much for that opportunity. My application gave the credit company permission to look into my credit history and see how much I owe to everyone. not only did I get my pride hurt, but my credit score go knocked down a few more points just by sending in my application – lesson learned.

Credit card companies have eyes all over and will use the information to tempt you to spend more with their card. Revolving credit is a dangerous solution to money problems. When using a cash advance to pay small emergencies, the payoff may cause more problems in the short-term, but keeping long-term debt out of your budget is a more cost effective approach to finances.