Consumer debt has been escalating in the United States for quite some time. In fact, in the United States, the average debt per household related to credit cards is over $15,000. This number is staggering and many American families are not sure how to get their debt turned around without filing for bankruptcy. We’ve been there ourselves and want to help consumers with our credit card debt calculator.
When you are first trying to wrap your head out mapping a strategy to get out of debt, you can quickly get overwhelmed. This is what I encountered before a friend setup a basic Excel finance calculator for me to use to get a handle on my total debt. In hindsight, this tool helped more than I could have ever imagined. Fast forward to 2012 and I’ve been debt free for 7 years now. I work with real estate companies professionally and continue hearing horror stories about first time home buyers and their massive debts.
Taking Those First Baby Steps…
Depending on how much you owe on your credit card, you will have a few different options available that can give you some immediate relief on how much you owe your creditor. One of the quickest ways is to contact your creditor directly and ask for a rate adjustment. You might be pleasantly surprised at how many credit companies are also suffering during this economic period, because the sheer volume of consumers that cannot afford their payments is alarming and they feel that too. With that said, your creditor realizes that it is sometimes better to give their customers a rate adjustment rather than having them bankrupt on debts that might not ever get paid. These types of credit monitoring programs have been available for many years and often times you might be able to get a slight rate adjustment just by making one phone call.
Route 2 – Debt Consolidation Offers
Since most households have 2 to 3 credit cards, getting your credit card debt consolidated can sometimes be obtained by looking for promotional offers that are available with your creditor. Often times during the year, a creditor will offer a balance transfer program that will give you a 0% interest rate for any balances that are transferred to them. However, it is very important that you make your payments on time if you opt for a 0% interest rate balance transfer. This is why it is important to read the terms and conditions prior to transferring balances because you do not want to end up in a worse situation with a higher interest rate due to a late payment.
Door Number 3 – Debt Relief Companies
Due Your Homework On Any “Debt Relief” Company Prior To Signing Anything
If your credit card debt is too much to comprehend at this point, or is beyond what a APR rate adjustment could help with you, then you might want to try a debt settlement program. These programs can often be more trouble than they are worth but in some situations they can give you immediate debt relief. The way a debt settlement works is that a company will work on your behalf and try to negotiate terms to lower your debts. However, if you have multiple balances with different creditors, it might be a good idea to transfer them all to one lender before trying to negotiate a debt settlement because it makes the process simpler for the debt relief company (Step 2 Above). Once a debt relief company is able to negotiate a settlement, then this company will act as your bank and loan you the money at a fixed interest rate with a manageable monthly payment. The fees with debt relief companies will often vary, however, for some it is a better option than filing bankruptcy and losing your buying power from filing bankruptcy.
The average APR on credit cards is now 12.78%. And currently, the United States has over 800 billion in revolving debt. Again, many of these individuals are concerned as to how they are going to get out of debt and need instant credit card debt relief in order to be able to breathe again financially. If you’re finding yourself in debt, then it is important to find a solution that works for you and your finances. If you do decide to opt for a debt relief company to help you get relief from your debts, it is important to make sure that the company that you work with has the proper credentials and has been able to help other consumers with their debt load.
The process of getting out of debt takes time and it’s very important to look at all your options before you make a final decision. We hope our credit card debt calculator helps you get started. Being overwhelmed with debt is no fun and can have a big impact on your well-being- both emotionally and physically. Which is why it’s so important to try to get ahead of your debt as soon as you possibly can. Good luck and let us know if you have any tips for us.