Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors

Do you, like millions of other Americans, feel like you're sinking in an ocean of credit card debt? Well, fear not--there are many options for reducing your debt way before you have to be concerned about receiving notices or daunting telephone calls from debt collectors. The important thing to remember is to be proactive in handling your credit card debt. Unmanaged debt can ultimately lead to lawsuits, loss of property, and tarnished credit reports.

Here are a few ideas for managing and/or reducing your debt:

-Get in touch with creditors right away. Often times, creditors will reduce credit card interest rates if you simply ask for a break. Explain your situation, and let creditors know if you're having trouble meeting your minimum monthly obligation. Many creditors will work with you to arrange a customized payment plan.

-Develop a budget. While many people dread this very important step in reducing debt, it can be extremely important in taking control of your financial situation. Compare and contrast fixed expenses-mortgage payments, rent, car payments, and insurance premiums, for example--with variable expenses, such as entertainment and recreation. List all your expenses, even those that seem unimportant. This is an important step in determining your spending patterns, prioritizing expenses, and determining whether or not you have additional money to contribute to the monthly payments on your credit card.

-Consolidate, consolidate, consolidate. While debt consolidation is a sometimes daunting and drastic step, it can be an important move in the quest to reduce your credit card debt. If you're a homeowner, consider a second mortgage or a home equity loan to pay off high-interest rate debt. While these loans often require you to list your home as collateral, remember that if you start skipping out on credit card payments, you could easily lose your home. What's more, these loans provide tax advantages that are not available with many kinds of credit.

-Go to counseling. Credit counseling, that is. Many credit counseling organizations will help you come up with a feasible solution for ridding yourself of debt. You can find credit counselors on the Internet, and many credit unions, universities and military bases provide credit counseling programs.

Also, get in touch with your bank, friends, and/or family for a recommendation. Some of the services credit counselors provide: Advice on how to manage your debt, assistance in developing a budget, and classes and workshops that are geared towards teaching consumers about money management, credit card debt, and budgeting. Counselors can also recommend a debt management plan (DMP), which allows you to make monthly deposits to the specific counseling organization that you're working with. Your counselor will then develop a payment schedule with your creditors that includes lower interest rates or waives certain fees.

For more suggestions and information on how to manage your credit card debt, please visit http://www.informedcredit.com.

Beth West has an extensive background in marketing and public relations, serving in management positions in both the hospitality and software industries. Currently acting as the Director of Marketing for InformedCredit, Beth is also trying to launch a freelance writing business.

---

IVA Advice

An IVA (individual voluntary arrangement) is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. This article provides an overview of... Read More

Top Ten Reasons People File for Bankruptcy

1. Eliminate the legal obligation to pay many of your debts.This process of wiping the slate clean is called a discharge of debts. The goal of a... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to... Read More

How to Protect Yourself: Debt Collections

So you are getting collection calls? You're desk is full of unpaid bills. You dread answering the phone. You are having trouble sleeping at night because you... Read More

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause the most marital discord. Many singles consider finances to be their most worrisome issue. Many times this... Read More

Debt Settlement : What You Need To Know

Debt Settlement companies work with your creditors to help you reduce your unsecured debts though arbitration and negations. The important thing to realize about Debt Settlement is... Read More

Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand these days. Creditors are certainly not going to look at you as a wise credit risk after... Read More

Five Major Ways to Save Money

There are two main roads to improving your personal finances: increasing income, and cutting costs.Increasing income is the harder road to travel. After all, you can't always... Read More

Debt and Financial Optimism in the UK Continue

With £1.3 trillion pounds worth of debt in the UK, Scotland's Citizens Advice Bureau has welcomed a new Bill to regulate lenders and protect borrowers... Read More

A History of Money and Banking Secrets That Banks Dont Want Published

A History of Money and TradeTo start with a history of money and debt, we must go back many years ago when people used to trade their... Read More

Life After Debt ? Strategies for Dealing with Problem Debt

Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing... Read More

Bankruptcy 101

Bankruptcy still remains a mystery in the eyes of many consumers. This article will review the facts of bankruptcy as per written law.Some of the information in... Read More

Corporate Debt Management ? Perspective on the Why

Entrepreneurs have a tough time in their formative years. They try too many things to get a foothold on this competitive business climate, and that too they... Read More

What is Debt Settlement?

Debt settlement is the process of negotiating with your creditors so that you are able to pay off a certain percentage of the debt amount that you... Read More

Your Ticket Out of Debt Relief

If you are in debt over your head and wondering if you will ever find a way out, the answer is yes! Serious financial problems can make... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way to get money is to have a yard sale and sell itemsthat you are getting ready to... Read More

Debt Elimination 1

If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably... Read More

How to Reduce Your Debt in 5 Easy Steps

If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need... Read More

The Debt Free Lifestyle

Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want. All... Read More

Debt Getting You Down? - Make a List!

Debt is not much fun and when faced with it, people sometimes look for complicated debt solutions and often overlook the many simple ways that you can... Read More

The Five Most Popular Questions About Bankruptcy

WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law, all actions against a debtor must cease once bankruptcy documents are filed. Creditors cannot initiate or continue... Read More

IVA: Individual Voluntary Arrangement

What Is an IVAThe IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through the past 50 years, America has not seen such large domestic growth. Its citizens have higher salaries... Read More

Debt Free and Carefree

Are you still clearing a mountain of debt amassed last Christmas or even during last year's summer holiday?For those of you who make financial plans, who budget... Read More