Yes, You Can Get Out of Debt

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The average American household carries somewhere around nine thousand dollars in credit card debt. So even though the majority of Americans spend more than they earn, it is possible to get yourself out of debt if you’re willing to adjust your spending habits.

You first need to assess your debt load.  If more than twenty percent of your take home pay goes to paying bills or more than thirty percent goes to paying rent or your mortgage, you’re probably financially overextended.  Other signs of being in over your head are if you pay only the minimum amount each month or if you don’t have any idea how much you actually owe.

If this sounds like you, don’t panic, you need to get yourself on a budget.  A budget will allow you to track your monthly expenses, and at the end of the month you’ll be able to add everything up to see where you can cut your spending.  Look for the easiest items to cut first, like cancelling magazine subscriptions and un-used gym memberships.

You should work aggressively to eliminate the highest interest rate debt first.  Eliminating that debt will save you from paying more over the long run.

You should also transfer your debt to lower-rate credit cards to save on the interest costs.

Debt Management firms like Consolidated Credit can negotiate with your credit card companies to lower your interest rates and reduce or even eliminate late charges and extra fees.

And finally if you have to use that credit card do so only for long term or necessary items like replacing major appliances or investing in your education.