by First Rate Debt Solutions
30. July 2008 16:01
How many credit cards do you have? Chances are, more than you actually need. You probably have one that offered you “miles”, one that offered you discounts at their store, and several others that “offered” something appealing at the time. Millions of Americans receive "pre-approved" credit card offers in the mail every day. If you have less-than-perfect credit or are swamped in debt, you probably still get the offers in the mail. And if you are in debt, they may seem like the answer. But more than likely, they are the problem.
On average, Americans receive eight credit card offers through the mail each month regardless of his or her credit history. It has become a trend for creditors to offer their cards to all consumers, especially those with credit and debt problems. They know that poor credit habits in the past will cause the consumer to spend more money with their card. Only after the consumer has amassed an enormous balance do they realize that they can only afford the minimum payments. This will in turn accrue plenty of interest charges and other fees, making huge profits for the creditor. Last year, the credit card industry took in over $43 billion in card fees.
But you can break the cycle and get yourself back on track. Using your Visa to pay your Mastercard (or vice-versa) is not the answer. Getting your debt under control is.
The average credit card debt among people who have at least one card is $9,205 -- triple what it was in 1990. People using credit cards in fast food restaurants spend up to 50 percent more than when they pay cash. The average interest rate on credit cards is 18.9 percent and the typical American family today pays about $1,200 annually in credit card interest.
If you are finding it increasingly harder to pay your monthly credit cards bills, it's time to take action. First thing is to stop using your cards while to try to pay down your balances. Take all your credit cards but one out of your wallet and use that one ONLY for emergencies. It will take some discipline but it's important to stop charging while you try to pay down your balances.
But if you have too many cards and your payments are too high to manage or pay off on your own, debt settlement may be exactly the program to help you get out of debt!
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