If you were to look at the credit card bills of an American creative debt solutions are in need, you also might be stunned to find out just how much they owe. On average, it winds up adding up to around $8000. Even so, if you were to snoop around a little further, and add in the mortgage, car payment and remaining student loans, it would be considerably higher. That $8000 in debt may be multiplied by 2, 3, 4 or more, as many people have way more than just one credit card.
The multiplier is irrelevant; even $8000 is a large amount of debt to shoulder. Many of these individuals are desperate to find a debt solutions, and the desperation only is compounded by the elusiveness of solutions. However, debt solutions do exist; most people are just not aware of what they are!
What not to do – a debt solutions poor strategy
One of the more commonly suggested strategies for managing credit card debt is to alter your payment plan. The problem with this is that you’re in debt for much longer, and still don’t have a lot of financial flexibility. Moreover, as the interest accumulates, you might wind up spending a great deal more of money than you originally would have.
On most credit cards, the minimum payment is now twice what it used to be, at 4% of the total balance. This is contributing to an increase in those filing for bankruptcy. This is particularly important for those individuals who could barely afford the 2% minimum payment. That’s part of the reason that paying off the credit card on a revised payment plan might not do much good.
The bottom line is that the more you pay on your credit card each month, the less money you pay in interest. This is part of why it’s so important that you wean yourself off of using credit cards as much as humanly possible. The next step is to figure out how to pay off the cards efficiently. Of course, you want to start off with the debts collecting the highest amounts of interest. Follow these debt solutions steps, and you’ll be in good condition. It’s not easy, but it makes all the difference.