Credit Card Debt

Credit Card Debt

Almost everyone has experienced some form of debt in their lives, the most common of which is credit card debt.

Credit Card Debt Statistics

• The average amount of unpaid credit card debt for families who have it is $12,000
• Credit card debt for Americans living below the poverty level doubled by the mid 1990s
• The average credit card balance for senior citizens went up 89% from 1992 to 2001
• The average consumer owes $7,100 in unsecured debt
• Over 55 million Americans need debt help
• A $10,000 debt at 18.5% interest typically takes 32 years and $24,500 to pay off if you don't pay more than the required monthly minimum.

Help is Available

If you're part of the statistics listed above, you will be glad to know that credit card debt relief is available. One of the most popular forms is credit card debt consolidation. This involves negotiation with your creditors to get your balances and interest rates reduced on all credit card debts. Then, all the new lower balances are combined and you only make one monthly payment to the debt consolidation company instead of several monthly credit card payments. Other programs include:

• Debt Consolidation Loan - A loan given to you to pay off your unsecured debts. You pay off your unsecured debts immediately, but you still have the loan to pay back. The benefit is that the interest rate on the loan is so much lower (generally half of what you're paying now) and you can have it paid off in five years or less.
• Debt Consolidation Mortgage - Allows you to borrow from the equity in your house to pay off your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible (check with your tax advisor to see if this will work for your tax situation).
• Debt Settlement - Allows you to pay off your debts at 30-50 cents on the dollar. Generally, you have to have the money all at once, but some debt management companies will give you one to three years to pay it off.

With so many debt relief options available, what's stopping you from looking into credit card debt relief? With our advice and the help from the pros, there is no doubt that you too can eliminate credit card debt.

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