Death by Debt. Visa, The New Mafia

Visa is the new Mafia and you've been marked for death by debt. You remember that class in high school about how to manage your credit cards? Neither do we. With no education available and most consumers first establishing credit around the same time you can buy alcohol it would seem the system was set for us to fail and be in this huge economic deficit. 80 percent of America is engulfed in credit card debt…Meaning; youre not alone and its not your fault.

Credit card debt can become a vicious circle thats hard, if not near impossible, to get out of. Increasing interest rates and delinquency fees add up quick and if you're making minimum monthly payments with these combined rates and fees you probably aren't seeing your balances go down each billing cycle. Creditors have established the minimum monthly payment amount to maintain consumers in staying current with their credit card payments but never really paying the balance down. This method keeps consumers paying on a debt for 15-20 years and usually adds up to three times the amount originally owed.

Regaining financial control takes a few dedicated steps starting with a household budget. . A basic budget counseling session reviews your debt to income ratio on a monthly basis and accounts assets versus liabilities. Most creditors, too, now require a budget on file to consolidate their unsecured debts and some provide better benefits based on the accuracy of the budget analysis administered. Legitimate non-profit agencies offer free budget counseling with a certified credit counselor to assist consumers in assessing where theyre currently at, where they want to go, and analyzing the information to figure out how they can help the consumer get there.
You may be paying on 4-5 credit cards monthly with sporadic due dates that probably do not coincide with your other monthly financial obligations. A debt consolidation plan combines those payments into one payment with a due date based around your other monthly bills accounted for in your budget counseling session. This allows the consumer not only the convenience of one monthly payment, but allows the consumer to select which date to make this payment to ensure a successful debt elimination program.

Now you have a budget and have consolidated your debt. How else can you benefit from credit counseling and get out of this crazy card circus? Well, debt consolidation has many more benefits that go along with one monthly payment.

Usually, the payment amount is a bit less for each creditor once consolidated. Once your unsecured debts are enrolled in a debt management program the creditor fees stop immediately. This includes late, past due, and over limit fees if youre behind on your payments. Each one of these fees is usually around $39 each but the savings doesn't stop there. Most creditors will bring an account to a positive reporting status, current, after 4-5 consecutive monthly payments have been made through the credit consolidation plan. This then helps you improve your credit score over time with consecutive monthly payments. Oh, and that interest rate of 20 plus percent? Reduced dramatically working with a non-profit credit consolidation program. Most creditors offer rates between 7 and 10 percent, fixed. For most that's a 50-70 percent interest reduction alone.

A budget in hand that accounts your debt to income ratio and a consolidation plan to reduce balances and rebuild credit starts you on the right track to ending that vicious cycle we call credit card debt. There are non-profit programs out there that provide free budget counseling and debt consolidation consultations to help consumers like you explore options and get educated on credit debt. Contact a certified credit counselor today and learn more free financial information on how to become and stay debt free. Non-profit Certified Credit Counselors are here to help you find financial relief. Call us 800.905.1563 or visit our website freedomdm.org for a free consultation and start your road to financial freedom.