Credit Card Debt; the Main Cause of Many Peoples' Debt Problems
Finding yourself with a mountain of credit card debt that you just can't afford is not a pleasant situation to be in; reducing and eventually eliminating this debt may seem like a 'mission impossible'; but if you make the right choices and have the necessary determination you will be able to accomplish just that and more.
There may be several reasons why your credit card debt has increased to such a level that you are struggling to make payments, but whatever they are the simple fact is that you have spent more than you can comfortably afford to repay.
It may seem a bit presumptious suggesting that credit card debt is the root cause of most personal debt issues but you cannot argue with the facts:
- Average US Cardholder holds 2.7 credit cards
- Average US Household credit card debt = $8000
- 43% of US Households Spend more than they earn.
- Average US credit card interest rate = 14.71%
Sources: Cardweb.com and MyVesta.org
Of the above points the one that should be focused on primarily is the average credit card debt of $8000.
To some that may not sound that high and to others it may seem the opposite but when you consider that this debt has increased by 160% since 1990, when the average credit card debt was just $3000, it is a worrying trend and one that shows little sign of slowing down.
How to Deal with Credit Card Debt in a Harsh Economic Climate
Almost every American seems to have credit card debt, and if you were to believe everything you hear in the news, the average debt owed to credit card companies is $10000, although $8000 would be closer to the actual the figure. You may be one of countless millions of American citizens whose debt is greater than this, or perhaps you are more careful with your cards and owe less.
Unfortunately, with more and more jobs being lost daily in the US it doesn't really matter if you owe $1,000 or $100,000 to credit card companies, if you are without a job or have had your earnings drastically reduced, you will not be able to pay your debt.
If this mirrors your situation and credit card debt is causing you issues, then it is time to start looking at ways of reducing or eliminating your debt using the many different debt consolidation options available to you.
The thought of dealing with debt is quite daunting for many people; but it shouldn't be! Reducing debt is a methodical process and, because of this, dealing with debt is much simpler than many people would have imagined. This site will highlight each step along the path to financial freedom, the first step of which is to help you gain an understanding of your individual financial status.
Step 1. Household Budget
You can't expect to fix something if you can't see what the problem is! That is why a complete breakdown of expenditure and income is an absolute neccessity. Not only will a personal budget sheet provide you with a detailed list of debt and creditors it will also highlight potential problems in your spending habits that if corrected could easily free up debt fighting funds!