Eliminate Credit Card Debt

Consolidating your credit cards and unsecured debt can be an overwhelming and extremely confusing task. Fortunately, we have found a few trustworthy and informative resources that you will find helpful.

Check out this article that explains your different unsecured debt consolidation options, as well as information on which options are better in different situations. This article is provided through the very informative Unsecured Credit Card Debt Consolidation Guide.

A good guide to your options when you get over your head in debt from the FTC: Knee Deep in Debt.

One of the very first steps to eliminate your debt is to get a good, accurate idea of what your financial situation is. For many people, this is the hardest part! So instead of getting started on the path to financial independence, they give up before they even start. Does this sound like you, or anyone you know?

One solution that most people find incredibly helpful is software. Computer programs such as Quicken or Microsoft Money are used by many people to simply their lives and take control of their finances. Still, you have to pay for these programs, and the last thing we want to do when we are digging our way out of debt is to spend more money.

Finally, we have discovered a good solution. Mint.com offers web-based personal finance software for free! Mint.com makes it easy to simplify your finances, as it allows you to import all of your bank and credit card accounts into its system. Check out mint.com and get started on tracking your spending today.

Here are a few good sources of information for people in debt:

An informative guide on how to Eliminate Credit Card Debt.

A guide to managing debt, with information on several different options for dealing with debt.

MSN Money's Savings and Debt section.

The National Foundation for Credit Counseling

Information on credit and credit scoring.

So you are in debt, and you want out. Whether you are struggling from month to month with barely enough to pay your bills, or you simply wish to live debt free, you are just like millions of others around the world who want to eliminate their debt. This lens will help you find the best, most efficient, and least expensive ways to get out of debt.

You will not find scams, "quick and easy" ways to eliminate your debt, or anything illegal or shady. What we will provide is accurate information to help you learn the best ways to get out of debt.

The first step in getting out of debt is getting an accurate picture of your situation. Most of you can do this on your own, but you may also be able to find an accredited credit counselor who can help you do this for free.

The first step is to figure out what you owe to whom, and group your debts by type. You'll want to differentiate between credit card debt, personal (unsecured) loans, mortgage debt, other secured debts (such as car loans), student loans, hospital bills, collection accounts and other miscellaneous debts.

In general, mortgage debts and student loans are considered "good" debt, although there are certainly exceptions. If your mortgage (or student loan) are predatory or have very high interest rates (or an adjustable/variable rate that could increase significantly) then you may need help with these debts.

If your student loans and mortgage have favorable terms and you are not falling behind, you will want to focus first on paying off your "bad" debts: your credit cards, personal loans, and other consumer debt. However, keep in mind that your first priority when money is tight is to stay current on your mortgage, then on your car loan.

After getting your debt information together, tally up how much total unsecured debt you have. Also tally up how much you pay per month on your mortgage, your car loan(s), your student loans and on your unsecured debt.

Next, you will need to put together a budget. Many people attempt to put together an ideal budget without first tracking their spending and expenses. This will almost always lead to a budget that is impossible to stick to. Do not fall into this trap, or you may become discouraged and quickly give up.

Instead, first try to track your spending for a month or 2. Track every single dollar you spend, not just your bills and regular expenses. Purchases that you make on credit must be counted, too. Then group the expense into categories, and subtract them from your household net income. It is important that you use your net income, meaning your income that you take home after taxes and deductions, rather than your gross (before taxes) income.

You may find it helpful to use a sample budget sheet to create your household budget. If all of this seems like too much work for you, you can seek the help of a non profit credit counseling agency. Many of them should offer budgeting help free of charge.

After you have created your initial budget, you will want to continue to track spending to see if it is accurate. Figure out whether you usually have a surplus or a deficit at the end of the month. If you have a surplus, then you will want to use a strategy to pay off your debt in the quickest and most cost effective way.

If you have a deficit, you will need to figure out what you can do to erase it. Figure out ways to cut costs, create additional income, or a combination of the two.

Now that you have a good picture of your current financial situation, you need to identify your biggest obstacles. Do you have too much credit card and consumer debt? Are you racking up late fees and overlimit charges? Are your interest rates too high for you to pay down principal? Or do you just need to rein in spending and pay more than minimum payments?

Your specific situation and obstacles will determine what your best options are. There is no one size fits all solution to getting out of debt, and anyone who tells you that there is either incorrect, or does not have your best interest in mind. Have a look around this lens and find the info you need to deal with your specific situation.

If the information you need is not up yet, leave a comment or question and we will help you out or direct you to helpful, reputable resources.

One of the biggest financial obstacles most consumers and households face is high interest credit card debt. It can be very tough to pay off credit card debt when most of your money is going towards interest. Fortunately, there are ways to help you eliminate credit card debt.

One strategy to pay off debt is to get lower interest rates. If your credit score and history are in good shape, and your balances aren't too high (relative to your credit limits), you may be able to obtain a lower credit card interest rate by simply calling your credit card company and asking.

If your credit is not in the best shape, or if you have already asked for a lower interest rate and were denied, then you may want to consider speaking to an accredited credit counselor. Credit counseling may be able to help you get lower rates on your credit debt, which could lead to lower monthly payments while helping you get out of debt much, much faster.