12 Feb 2020 Average Credit Card Debt and Tips to Lower It
So, while it is not as high as before credit card debt is something that a lot of people deal with in the US. The total consumer debt in 2020 is currently sitting at around $19.4 trillion; That is a lot of credit card debt!
This is because people get credit cards and fall into situations where they cannot pay the debt back, or they are not informed of the interest rates well enough before racking up a bill that causes them to p
ay double what they spent in interest back. When you are dealing with something like credit card debt, it can feel like you are never going to get out of it. This article is going to discuss ways to pay off, avoid, and never need to get into credit card debt of this magnitude again.
If you have credit card or multiple that is causing you to fall behind on the payments, then consolidation is going to work well for you. Credit card debt Consolidation is something that helps those that have multiple payments but is stuck in the problem where they cannot pay all of them off at once or they have to go a couple months before paying one in order to pay the other. So, with credit card debt consolidation some companies will pay off all your credit card debt and allow you to pay it off through a lump sum to them. This is a good route to go because the credit card debt will show paid off in good standing on you credit report and then making these payments to the consolidator will also work towards restoring your credit to good standing. Once you have consolidated all of your credit card debt into one payment, the important thing is going to be not to open another credit card until all of those ones are paid off because you do not want to end up in the same spot as you were before. Now if you only have 1 or 2 credit cards then this still can help but there may be better options for you to get them done sooner rather than later.
Debt relief Websites
Websites focused in helping you get out of credit card debt can be used to help reduce your payments and pay off your credit cards faster and easier. They are basically a credit card debt company that helps you and your credit. This will also work for people who have other debt to pay off, but we are going to stay focused on credit cards. Sites like Consumer Credit Card Relief will be advertised as primarily credit card debt relief & a credit card debt company so that you pay off your credit cards faster with little detriment to your living and saving money at the time. What they do is they take your income, your debt ratio, and your expenses and creates a plan for you to pay off your debt as quickly as possible. Other sites like this will even help to negotiate your debt down, sometimes even to half of what your original amount owed is, in order to make it easier to pay back and get out of debt. This works well for people who do not want to close out those accounts, just wanting to pay the card balance down to zero. It works to improve your credit while also keeping those options open for the future use if you get into a spot where you need them.
Often if you have been in default with a credit card company long enough, they will offer direct settlement options. Now, keep in mind that this will not help your credit nearly as much as if you would have just paid off the debt like normal. If you are in a situation where you know that it is going to be a very long time before you can pay of the credit card, then talk to the company about a credit card debt settlement. These settlements while cut off a portion of what you owe to them and they will work with on paying it back. This will make the payments less, but you will have to close the account once it is fully paid off and you will not be able to use the credit card at all anymore. However, this will really work in your favor because it will not be in default on your credit anymore. It will no longer be hurting your credit so long as you pay what you are supposed to, but it will do almost nothing to raise it at the same time.
There are some companies that will aid in paying your credit card debt until you are able to pay for it yourself these are know as debt relief aids. What they do is they give you a few months’ worth of payments that get paid out to the credit card company that you are in debt with and then once that is paid off then you start paying them back. The other way to get help with credit card debt is sometimes going to your family will be the best options that you have because they can give you some aid with your credit card debt. The other things are that they will not charge you interest because you are family. So long as you pay them back for the help that they give you it will be ok. Family and friends are the best people to go to for help with credit card debt, even if they can not give you any money, they may be able to point you in the right direction for where you need to go to get it paid off.
Now that you have been given some options to pay off your credit card debt, we are going to talk about how to stay out of debt. Sometimes people will fall back into credit card debt right after getting out of it because they relied too hard on the credit cards to get them out. The biggest thing to do is learn how to budget your money so you do not need to rely on credit cards at all. If you can cover your own expenses with out them that is the best route to take. Once you know how to budget do not spend anything out of the budget, if it is something that you do not need and cannot afford wait until you can. Always keep an emergency fund waiting on the side just in case something happens such as you are losing a job or getting sick and needing to take time off. Asking for help is not something that anyone should ever feel ashamed of because it is very normal for people to need help occasionally. The other thing is, if you are a person that has a hard time not spending money talk to someone. Find someone who can help you break the habit of overspending and you will find that you are able to do even more stuff than you were before by just be conscious of where your money is going.
Credit card debt is not something that you want to mess around with because the more credit card debt you get into the harder it is to get out of. Credit card debt relief and credit card debt settlement is something that can really help you. Do not ever feel like you are failing when you got people to help.