Credit card debt burying you alive? Dig out with these resources

Been getting any mailers from credit card companies lately? No? I don’t know anyone who is. Personally, I think going to my mail box and not finding any credit card offers is a real good thing. Americans owe over 900 billion in credit card debt. Unfortunately not all of that credit card debt accumulation can be blamed on instant gratification purchases. Some people use credit cards to buy groceries, obtain cash advances for rent, to pay for health care and medicine.

These days if you happen to be carrying a little too much debt you’re considered as one of the lucky ones. On the other hand if managing your credit card debt is a daily burden (for instance if you fear the loss of your car or other personal assets tied to your credit card) there could potentially be some relief from your bank as they and other consumer groups are lobbying regulators for a plan to help consumers struggling with credit card debt. In this case I believe the best alternative is not to wait for any sort of bank bail out plan but to look for prompt solutions you can take upon yourself. Here are a few suggestions.

• Pay at least the minimum due on monthly credit card bills. This is important because paying on time protects your FICO score. Many credit card issuers offer a zero percent interest for the first year when you transfer your balance. This is a great option for people whose credit rating score falls in the 700 range. You can find some good balance transfer deals on the web at cardtrack.

• If you can’t afford to make minimum payments, contact your credit card company and ask if they offer a hardship payment plan.

• Contact Take Charge America to find out if you qualify for a debt management plan.

• If it feels like you have credit card up to your ears, don’t try to recover on your own. Getting a financial counselor to listen and advise you will help you gain more control. The Federal Trade Commission provides an excellent resource for helping consumers choose a credit counselor.

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More on this topic (What's this?)
Credit Card Debt: Next Big Hit to Banks? (naked capitalism, 10/1/08)
Living Within Your Means (Disciplined Approach to Investing, 10/15/08)
You better watch out, you better not cry (The Mess That Greenspan Made, 12/25/08)
Read more on Credit Card Debt, Credit Cards at Wikinvest

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This entry was posted on Monday, November 10, 2008 at 8:52 am and is filed under Debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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