Credit Card Debt - Plastic Debt

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Debt consolidation - How to avoid drowning in a sea of unpaid bills
Debt consolidation may be the answer for anyone drowning in a sea of unpaid bills. Debt consolidation lumps all of your unsecured debts including credit card bills, doctor, dentist, veterinary, and other service provider bills - any bills that are not secured by collateral or property such as an automobile or a house into one monthly payment. Types of Debt Consolidation Ther... Read debt consolidation article



Government credit repair
If you are building a credit history, suffering bad credit or else your credit is great, there are sources available that will help you maintain credit, repair credit, and build credit history. If you have bad credit you must at least apply for two loans and be turned down before, the government will consider giving you a loan. Your credit report is not what is important, rather declines is the fo... Read debt consolidation article



Credit Card Debt - Plastic Debt
The Debt

In America, it is not only accepted that the majority of us are knee-deep in credit card debt, it is normal. Two generations ago it was just flat out wrong - a sin, to have any kind of debt at all. Today it is quite a different story and credit card debt is a mega, multi-billion dollar a year industry. The major credit card companies are eating it up like hotcakes and our credit reports are taking a lot of the heat. More than 75% of all college students are in credit card debt within their first year of school. From Sears to Visa to Diner's Club, people are adding to the debt stock pile that the distributors thrive off of. There are tens of thousands of websites that support and offer more to this enormous problem and it has got to stop! We have to draw the line individually, because there are no boundaries on the excessive spending in America.

What's Really Happening

It's even stated in the Bible - "The borrower is slave to the lender." In any case, where you have taken out credit on something; be it a car, mortgage, student loan, credit card, etc..., you are borrowing money. Not only that, but you are borrowing more money than you need. The average APR (annual percentage rate) on a credit card is 19%! In many cases, when a credit card is "maxed out" you will pay only interest with the minimum payment. As if this wasn't enough stress, the creditors harass you like their life depends on it and you begin to feel uneasy about even answering the phone.

Is Debt Consolidation the Answer?

Many consumers are drawn in by debt consolidation loans. It feels like instant relief and the monthly payments go down. Suddenly you feel like life is getting better by the minute. Oh and what's this, there is left over money from the loan - PERFECT! You needed this for that yard project or supplies or something that you've been waiting to have the extra money for. Why not reward yourself, you have taken a big step and your financial future is improving. Or is it? The fact is that you have fallen into another trap. You are now borrowing more money with an interest rate and you most likely got more than you needed. Statistics show that even though the math often works for a consolidation loan, the consumer ends up with his ears nailed to the wall.

What to do Now

STOP BORROWING MONEY! This would be a good first step. Stop right now. Do not borrow a dime. If you don't have it - don't spend it. You can build up an emergency savings account to pick up any negative events that may occur. This emergency savings account is of course another article but you get the basic idea right? Oh, you still feel you need plastic in your wallet? Get a debit credit card. At least with a debit card you can only spend what is in your bank account. You can also use most credit card debit cards just like a credit card for purchases. Your credit report will begin to reflect this positive behavior because there will be no more credit card bills piling up. Here is a saying to ponder before you think of making another large purchase - "If you can't afford it, don't buy it. If you can afford it, sleep on it."

To read more about how you can get your online credit report free with no obligations and get a prepaid Mastercard debit card with no immediate debt, go to http://www.cleancreditonline.com.

Tom Justice is the webmaster for Clean Credit Online and does all the designing, marketing, SEO and maintenance for the site. He has a passion for personal finance and how the economy and consumers are affected by money. To see how you can use Clean Credit Online to help you with your personal finances please visit http://www.cleancreditonline.com. "Plastic Debt" - © (2005) Reprinting is allowed assuming all content is left the same.

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Debt Relief Secrets Revealed

You have that "American Dream" - the 2.5 kids, the puppy dog, the white picket fence, and the big back yard. But don't forget the two cars, the impending 2.5 college educations, the kids' clothes, toys, and schooling, along with clothes, vacations, furniture, Christmases, Hanukahs, and every other expense on your credit-card statement.

The reality of the cost of living in America, or anywhere in the Western world, can be a hard pill to swallow, especially if you don't have the cash flow to help that pill go down.

What's the easiest solution then for most Americans?

Go into debt. (That's how the American Dream can quickly transform into the American Nightmare.)

If you're in this situation, stop beating on yourself.

Kicking yourself while you're down for things you've done in the past is no way to solve your problems in the future. Instead, consider ways that you can constructively and positively get rid of your debt.

No - one way is not to open up another credit card and transfer your debt there. That only means higher interest payments for you down the road.

No, the best way in many cases for you to solve your debt problem is to take advantage of what's probably right under your feet as you read this.

The carpet?

Close. What's under your carpet?

An old hardwood floor?

OK, now you're getting colder as well as silly.

Let me help you with a huge clue - you've been paying a monthly mortgage on it for the last x amount of years.

taht's right, you've got it - your house!

Use the equity that you've built up in your home to your advantage. That's where a home equity line of credit or a home equity loan comes in, to help you consolidate your debts.

A home equity line of credit is like loan that works like your credit cards. You take out a lump sum of credit, based on your equity, to pay off your debts and then you pay off what you owe monthly or just pay the interest.

Obviously, however, for someone who's had problems with credit cards in the past, the line of credit might not be the best.

Instead, there's the basic home equity loan. Home equity loans act like lump sums that you can use to pay off your debt in one fell swoop.

With home equity loans, you agree to take out a loan for the set amount of money that you need, say, to pay off the total amount of your credit card debt. That loan is in essence taken out on your house!

Of course, that's not your money. You need to make payments every month for the term of the loan, like you would for your regular mortgage or for your car loan.

So what's the benefit of that if you still have to pay a regular monthly amount?

Well, chances are, those monthly payments have less interest attached to them, so your total monthly payments would be less than they would be on your typical plastic cards - and in many cases it does work out to be considerably less!

Plus, instead of having to send out two, three or even ten checks to all of the credit card companies that you owe money to, you only need to send out one check to the loan bank.

Duncan Roberts is a seasoned Debt Consolidation guru - having had to do it so many times himself already. You can learn more Debt Consolidation Tips and Tricks at Debt Consolidation.


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1. Debt Consolidation Information
2. Debt problems - Online debt consolidation guide
3. Consolidate Debt
4. Unsecured Debt Consolidation Services
5. Unsecured Debt Consolidation Loans Guide
6. How to Get Out of Credit Card Debt
7. Debt consolidation loan - Your different options
8. Considering a debt management company
9. Credit Card Debt Consolidation Loan
10. Bad credit debt consolidation - Your options to reduce debt with poor credit

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Credit Card Debt - Plastic Debt
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