Credit cards can be a good thing if used properly. Many people use credit cards in case of emergency or charge a little bit each month and pay it off in order to keep their credit ratings up. However, it seems that the majority of people who use credit cards end up misusing them. If you have an annual salary of $40,000 and credit card debt of $30,000, you know you have a debt problem.
When you get in over your head on credit card debt, you end up paying the minimum payments each month because that is all you can afford. By doing this, you accumulate huge interest charges. You could end up paying 2-3 times the cost of the items you charged, or even more. Obviously, you will save a lot of money in the long run if you can get your credit card debt under control.
One way to get help with your credit card debt is to contact a company such as Debt Settlement USA. These companies negotiate with your creditors to try to reduce the amount you owe. They do this by getting the companies to agree to a settlement for less than the original debt amount. Usually, the debt settlement company has you pay them one monthly payment and they pay your creditors according to the terms they negotiate for you. This can save you money so you can get your credit card debt paid off more quickly.
However, using a debt settlement company does not solve the root problem. You need to address the problem of your spending habits or you will eventually end up right back where you are now. It is hard to control your spending when you have a credit card available that is so easy to use. You want something, so you buy it. You’ll worry about the consequences later. Unfortunately, this always catches up to you eventually. If you buy more than you can afford, you will find yourself a slave to the monthly payments.
The solution for many people is to stop using credit cards altogether. Some people cancel their accounts, while others take drastic measures to make it difficult for them to use the card. Freezing your cards is one solution. Just put them in a large container of water and stick it in the freezer. You can still get your card if there is a true emergency. You’ll just have to wait for the ice to thaw first.
You can read more about debt settlement on twentiesretirement.com.