Everyday people hear about how all Americans owe thousands of dollars in credit card debt. These rumors are distributed through the media, government, bank officials, and many other people. They all say the same thing. That a trend is growing of Americans increasing in credit card debt. However if you break down the statistics that everyone talks about you can see the truth about credit card debt.

There’s a statistic that claims the average American carries more than $8,000 in credit card debt. This statistic is widely believed because of its publicity. However the fact is that the statistic itself is skewed in the way it was found. The average American is conceived of as having kids and living in a multiple bedroom house with a basement. We can see that the word average can easily confuse a person about what it really means.

The truth is that 1 in 20 American households actually have more than $8,000 in credit card debt. This is because many families don’t even have credit cards. Another huge chunk of American families pay off their credit cards as soon as they get the bill and thus don’t even owe anything to the credit card companies even though they have credit cards. Out of the remaining families only a very few owe $2,000 or more in credit card debt. Thus you can see that the “average American household” number is deceiving.

You may ask why the number is a skewed number. The answer is based on how they arrived at their average debt number. They got the average American debt number by taking $750 billion in credit card debt and dividing it by 84 million American households which is the number of households that have one or more credit cards. The resulting number is the average. This number however is inaccurate when compared to the truth about credit card debt.

An astounding 23.8% of American households don’t even have credit cards! These households weren’t included in the calculation since they don’t have credit cards. Another 31.2% of Americans pay off their cards as soon as they get the bill. This totals to an astounding 55% of American households that have no credit card debt.

For the $1,000+ range there are only 29% that are in that range and only 21% of households that owe $2,000 or more. Finally we can see that only 4% of households owe $10,000+ and 1% of American households have credit card debt in excess of $21,000. We can see that very little to nothing is owed by most of the American households. There are only 21% of American households that actually owe more than $2,000 in credit card debt. This is only 1/5 American households that owe a decent amount of money to credit card companies and we can see that the $8,000 is nowhere near what the average American household owes in credit card debt.

Layla Vanderbilt is the content coordinator for a leading website that offers for debt consolidation advice and guidance.

categories: Debt,Bad Debt,Finance,Loans,Credit Cards,Personal Finance,Money,Money Management

Many people have overcome their debt problems through debt consolidation loans. However you may be wondering if a debt consolidation loan is really the best idea for your situation. In some cases a debt consolidation loan may put extra unwanted pressure on you and your family and ultimately cause you to lose your home. If you’re considering getting a debt consolidation loan then you’ll want to consider a few factors to make sure it’s the best option for you.

It’s important that you factor in if you have bad credit or not. This is because many of the loans that you will qualify for with bad credit will be secured loans. This means that you will have to use a house or vehicle as collateral and if you fail to pay the loan then you will lose whatever item you put up for collateral. Thus it’s important to identify why you’re getting the loan so that you don’t lose something of even greater value. If you happen to qualify for an unsecured loan and you’re trying to pay off your debts and not your current bills then you should opt for the unsecured loan. In the event that something unpredictable happens, such as you losing your job, you won’t have to worry about your home being in jeopardy. Finally you should ensure that the monthly payments that the loan will cost will fit into your budget without it becoming a problem as you don’t want to default on the loan.

You should also look over your financial history when you’re considering a debt consolidation loan and figure out how you got into debt to begin with. If you notice that your income has been lower than your expenses then you will want to try to cut back on your expenses as much as possible. If you’ve already tried that then you may consider seeking help from the government, switching homes, or even switching careers to a better paying one. You want to understand how you got into debt so that you don’t get back into it after you’ve gotten out by using a debt consolidation loan. Otherwise you will be back in debt again and in the long run you’ll never get out.

Too often people abuse their debt consolidation loans and end up getting further in debt. It’s important that you resist the temptation to use your debt consolidation loan for your current bills and month to month expenses. Many people do this and then they are unable to pay off the loan and they are still unable to keep up with their bills. You will have to ensure that you use the loan properly so that this doesn’t happen to you.

If you have a lot of debt then a consolidation loan can be very helpful in managing your debts and current finances. Before you take out the loan though you should be ready to use it how it’s meant to be used and avoid the pitfalls that it has. Finally you will want to ensure that your lender is giving you a fair interest rate if you have bad credit.

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

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It may be time to get a debt consolidation loan if you are dealing with more debt than you can handle. If you don?t have enough income to handle your bills and debt then a consolidation loan is just right for you. Rather than accumulating late fees and destroying y our credit you can take action now and do something to prevent this from ever happening.

The first thing you can do is to try to get an unsecured debt consolidation loan. By doing this you can have all of your bills paid off and then make one small payment every month rather than trying to make several payments every month. By taking out a debt consolidation loan you will be able to avoid the late charges that come with missing some of your other payments and you only have to worry about one bill. However the problem is not everyone will qualify for an unsecured debt consolidation loan due to having bad credit history.

If you are unable to get an unsecured loan there are other options for you. If you still want to get a debt consolidation loan and you have bad credit then you can apply for a secured loan. To get a secured loan you will need to have some type of collateral usually in the form of a house or vehicle. Lenders are more likely to give out secured loans than unsecured loans because they can sell the collateral to get their money back if you don’t pay them. It?s always better to get an unsecured loan if possible however if you?re finances are in jeopardy then a secured loan will work as well.

Another option is to hire a company to help you manage your finances. These companies will help you lower your monthly payments. While the companies don?t give out loans they will contact your creditors and help you get manageable payments. They will charge you a small fee to do this and you can benefit from lower payments and lower interest rates. Many creditors are happy to work something out if they feel confident that they will be getting what?s owed to them. If you have bad credit then this is a good way to help you manage your finances.

Not all of these companies are legitimate. It’s important that you do some research on each company before you decide to hire one. Some companies claim that they will pay your bill for you for a small monthly fee plus what you owe. However a few of the companies will actually take your money and not pay the bill or pay it late. This causes you to have even worse credit and get extra penalties and late fees.

If you have bad credit you might be worried about how you can get out of debt. If you start to see the problem arising then you should find a solution before it gets worse and becomes unmanageable.

Layla Vanderbilt is the content coordinator for a leading website that offers for instant bad debt consolidation advice and guidance.

categories: Debt,Bad Debt,Finance,Loans,Credit Cards,Personal Finance,Money,Money Management

Times have become extremely difficult. As many families face trying financial times from illness, losing their jobs, and having less money coming into the household, it is hard to make ends meet. Some of the luxuries we enjoyed have gone away and it is hard to meet financial obligations. This can cause added stress, worry, and grief. You do not have to let all of the weight lay on your shoulders. Thinking of bad debt consolidation options may be beneficial.

There is nothing much worse than having the phone ring constantly throughout the day from creditors. Ignoring the problem for sure will not make it go away. This is when you can stop and get your financial situation in order. Creating a true picture of who you owe and how much by listing them with the pertinent details will help a bad debt consolidation counselor grasp your situation.

When you complete your list of debts you now have a good picture of your finances. This makes it easier for the bad debt consolidation company to understand your needs. To begin searching for a company to work on helping you reduce your debt, do a quick online search. Learn what their process is, the time frames and how they helped other people in similar situations.

The first step a bad debt consolidation company makes is contacting the creditors on the list. This is their area of specialty and they will work hard at negotiating new terms to fit within your current budget.

Working diligently on your behalf most credit counselors are generally successful getting a new agreement for you. This is also dependent on how willing the people you owe the debt to are open for discussion.

The good news is, once this process is complete and you have a new agreement, you will begin making just one monthly toward you new bad debt consolidation balance. The payments will go to the consolidation company who will send it to the creditors until the debts are satisfied. When you are done, you will have finished the debt.

When searching for assistance, you will find there are a variety of agencies that can help and that specialize in debt consolidation. Take careful time to study how they work as some are legitimate and some are not. There are also non-profit agencies who offer advice and direction at no charge to you. You can become debt free.

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

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When you are a small business owner you must learn the importance of getting a loan consolidation. For the first few years you run your business you must be particularly careful with your finances. It is likely that you will go into debt at some time and have to get some type of loan consolidation. They will help you better manage your debt so they are reduced to one monthly payment. If you learn about loan consolidation you might be able to save your business from struggling in the future.

If you’re going to find a lender for a loan then you should have your finances prepared. However if you have someone else that handles your finances then you will need to get them organized properly first. It’s important to have a few specific statements with you. You should have a statement for your income, expenses, and debts. When you are putting together the information about your debts you should ensure that you include the interest rate and the amount of your monthly payments. This will allow the lender to see where you stand in terms of your finances. This could potentially help them make a decision in your favor.

The bank also offers consolidation loans if you don’t want to use a private lender. Sometimes the guidelines are stricter based on what guidelines corporate has set up for them. However, seeking loan consolidation from a bank is a good place to start if you have decent credit. Ask for the loan officer and fill out the application that he or she gives you. You will be able to determine what type of loan that will work best for you by talking to them about your business and your situation, and they may ask for other paperwork to be provided with your application. Make sure you turn it in as soon as possible so it doesn’t go out of date.

Sometimes nonprofit organizations provide ways for small business owners to obtain consolidation loans. The Small Business Administration is one such organization, and they are able to help you with many aspects of running your business. By searching online you may be able to find other organizations and companies that can offer you help.

After checking through your various options you will need to pick a financial institution or organization that you will want to get the loan through. Start by filling out an application and including the documents that were mentioned above. You may want to even create a document with the time frame in which you plan to pay the lender back.

Sometimes it is better to just get a second credit card. Some business credit cards have great interest rates, allowing you to avoid interest for a few months. If you think you can pay off your debt before the credit card starts getting interest, this could be a great option for you. This particular method works very well if you have a small amount of debt, and it can help bypass the higher interest rates you would have had to pay.

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

categories: Debt,Bad Debt,Finance,Loans,Credit Cards,Personal Finance,Money,Money Management

Your debt may seem to be in total control of your life. It may feel as if your credit card debt owns you, with no way out. But this plainly is not the case. There are means to get from under all your unsecured loans and credit card debt. The efforts required to get from under your debt load isn’t easy. It’s going to require discipline and sacrifice, but if you’re resolute, you can triumph over your debts and become financially secure. No more dunning calls and letters from collection agencies, no more turn downs when applying for auto or real estate loans. Here are some basic tips to help you address your debt issues and work towards a secure financial future.

First of all, get rid of most of your credit cards. Cut them up! You can keep one or two for emergency use. However if you have massive credit card debt the odds are that your have problems using them responsibly. Don’t be embarrassed by this, just acknowledge that you have a problem and that you need to stop using them, at least until get your debt under control and are living within your income. You might even was to leave your emergency credit card with a family member or good friend, someone you trust, so that you’ll have to explain your reasons to an impartial party before incurring additional debt.

For relieving credit card debt account holders can request a reduction in their annual percentage rate (APR). A survey conducted by the U.S. Public Interest Research Group in March 2002 found that among its fifty participants, including people of all credit backgrounds, who contacted their credit card issuers, 56 percent received a lower APR. On average the percentage went from 16 percent to 10.47 percent.

Credit card debt is said to be higher in industrialized countries. The average U.S. college graduate begins his or her post-college days with more than $2,000 in credit card debt. The median credit card debt in America is $3,000 and number of cards held is two. Sometimes the late fees, high annual percentage rates (APRs), and universal default overcome consumers who frequently do not pay off their debt and the customer declare bankruptcy. If a customer files for bankruptcy, the credit card companies are required to forgive all or much of the debt, unless such discharge of debt is successfully challenged by one or more creditors, or blocked by a bankruptcy judge on legal grounds irrespective of creditors’ challenges.

You have to commit to eliminating your debts by whatever means necessary. If you find you are not making any headway on your own, you’ll find that debt settlement companies are a great resource for assistance in paying off your debts. You may also decide to retire your debts one at a time by saving up funds to pay the debt in full or to settle the debt with an offer in compromise.

Call a good debt settlement business. If you have a large load of unsecured debt like credit cards, doctor bills and individual loans, you are in need of a good debt settlement business to assist you with your money problems. These types of businesses have assisted millions of folks to handle their money woes by assisting them with negotiations with their credit account holders. These companies may even be able to assist you in getting rid of your bills faster and for less money than you really owe

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

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If you are the same as the majority of people in America, you are trying hard to not incur any new bills and are paying down the old ones. But, a few people are overwhelmed by major credit card bills, doctor bills and other unsecured debt. A lot of these folks are thinking about declaring bankruptcy, except they may not really know the actual impact that could have in their life and their employment.

This economic crisis has left families with losses. Maybe the family’s second income was lost, or now you’re responsible for an out of work family member. Maybe unemployment checks hardly cover food and utilities. Or have you lost all and joined the millions of American’s who know they are homeless while their home sits empty and vacant with a for sale sign on it and the debt collectors use up your cell phone minutes. What are your debt settlement alternatives?

A legitimate debt settlement company will enable you to eliminate your unsecured debt by as much as 40-60%, eliminate the late fees that have accrued, fully resolve and settle your debt for less than you actually owe, put an end to harassing phone calls from collection agents and others seeking to recover on the debt, avoid the filing of suit on the debt by the credit card company, avoid having to file for bankruptcy protection and, best of all, enable you to become debt free.

One can settle debt outside the courts. You are an honest American who always paid your bills and your debtors may wish to help you continue to do so. Today lenders and bankers are starved for cash. Unresolved debt not only hurts you as the phone constantly rings, and the notices pile up, it is hurting our lending industry and our economy.

Stay Awsy From Unfair Collection Practices ? If you use a debt settlement company, you can stay away from unfair collection practices, and irritating telephone calls from bill collectors. This means you no longer have to be afraid of the phone, don?t need to block your calls and have far less stress overall.

Get Rid of Late Penalties ? One method credit card lenders use to increase your bills is requiring late penalty fees. If you use a debt settlement that pays off the bill and thus gets rid of any penalty fees. Stay Away From Lawsuits and Legal Action ? If you hold any unsecured debt, you may end up getting sued if you don?t pay your bills. If you instead settle those bills thru a debt settlement company, you won?t have to worry about getting sued and your record remains good.

Debt settlement businesses work with a person do figure out which settlement method will fit their needs. As soon as they determine how much total debt you have with all your accounts, they will try to work with your lenders to get the total lower. You could be asked to pay a single lump amount or possibly payments each month. If you have no savings available, a skilled debt settlement company will accumulate the cash for you put it towards an account used to pay off your bills.

Believe it or not, lenders and banks are so desperate for cash right now that some debt settlement amounts total less than one half of what the person owes. That means that a $20,000 debt might be settled for only $10,000!

Layla Vanderbilt is the content coordinator for a leading website that offers for instant bad debt consolidation advice and guidance.

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