If you are stuck in debt, the immediate action you should take is to understand why you have fallen into that kind of situation. This is to acquire mental awareness which you can use to start battling and winning over your debt. In other words, you must know your enemy to succeed in defeating it before it can totally ruin your whole life.  Before it’s too late, you must do something to get out from debt. Thus, you must reflect on the following ten reasons which grab people’s feet into the credit trap.

1. Not building an emergency fund. Without an emergency fund, people are defenseless against debts and loans when emergency situations occur. This happen when they suddenly loss a job, suffer unforeseen business losses or incur unexpected medical expenses. Having no fund for these unanticipated events, they resort to borrowing. That is why it is always a must to save money and put up and emergency fund for rainy days.

2. Failure to stay fit. One of the main reasons why people are stuck in debt is their failure to maintain a healthy body and lifestyle. Sickness doesn’t only mean additional expenses, but it also means lessening of your productivity and income opportunity. Hence, doing regular exercises, maintaining the right diet and having enough rest are important ways to escape from being stuck in debt.

3. Being so material. Enjoying too much pleasure (drunkenness, gluttony, smoking and the likes) and preferring material over spiritual things causes poverty. Often, they become addiction and become the main reason why people get trapped in debt.

4. Failure to identify debt problems. Many people usually notice debt overload when it is already on its worst stage. This usually happens when they don’t monitor the movements of their borrowings. Here, they don’t have an early prevention schemes to cure the early symptoms of getting caught in debt.

5. Dishonesty. Another reason why debt becomes severe is people’s dishonesty. This includes reporting false statements about one’s financial condition and performance to different agencies and individuals. When people don’t report credit problems to loan agencies such as banks, they may get loans which are beyond their capacity to pay. Likewise, by submitting fraudulent tax returns, they eventually suffer civil and criminal liabilities.

6. Lack of financial planning and budgeting. To have a greater chance of not falling into the snare of debt, we must have a plan to avoid it. This is just like having a light to brighten our dark ways ahead. Personal finance planning, particularly budgeting, gives us guides and the right steps to smoothen our way to our financial journey. It can also be used for monitoring purposes by comparing actual to budgeted financial figures. Unfortunately, these tools are habitually ignored by most people.

7. Gambling. Gambling debt is not just a mere financial problem, but it is also an indication of addiction that causes personal problems. One of the major reasons why people fall into debt is their false hope, and gambling is one common example of this risky kind of hope. Often, gamblers rely on their winnings to settle their growing financial obligations. And because of the very tiny chance of earning from gambling, they eventually suffer from bulging debts.

8. Not acquiring professional growth. Our comfort zones do not always bring comfort to us, especially when it comes to winning against debts. If gambling is taking too much risk, not stepping outside one’s comfort zone is not taking any risk. Both of these behaviors will not help anyone get out of debt. Thus, we need to take extra courage, initiative and diligence to find rooms for improvements.  If you are an officer or an employee, you may acquire additional education, certifications, and skill enhancements to boost your professional market value and increase your worthiness to demand higher salary or wages.

9. Maintaining lot of credit cards. Unlike debit cards which use the bearer’s own money, credit cards are loan cards. This means that the more we use credit card, the more we owe money. Credit card debt is one of the common debts we can find in a person’s list of financial liabilities. Therefore, we must not overuse those cards, but instead use our cash as possible as we can.

10. Procrastinating payment of debt. A person’s negative habit affects his whole life. It can damage his professional, emotional and financial aspects. One of the bad habits that can cause such harm is procrastination. Many people are not focus and passionate in paying their debts and loans. That is why they loss the habit of settling their financial obligations on time. Consequently, they are permanently stuck in debt.

Conclusion:
Getting out of debt may require us to seek for additional knowledge and understanding of the facts. As listed above, we must formulate the right attitudes and values that will lead us to do the vigorous actions needed to achieve our financial freedom. We should also understand that personal finance is only one of our life’s aspects that can be affected by our negative habits, such as procrastination, dishonesty and lack of self-control. This means that we should concentrate on improving our entire personality to develop our life as a whole. If we can entirely develop ourselves, we can also develop our financial aspect, which is only a part of it.

Related posts:

1. 10 Attitudes that Help You Get Out of Debt
2. Advantages and Disadvantages of Using Credit Cards
3. The Best Ways to get out of Debt

Pros of Credit Card Debt Consolidation

1. Decreased interest rate – You will have a much lower interest rate if you consolidate your credits and
   thus you will save your hard-earned money. With the new loan or the new card you have to deal with one creditor only and if any discrepancy arises, you need to make one phone call instead of several calls.
2. Lower monthly payment – As you will have a new loan with lower interest rate, your monthly payment amount will also be low. This will be according to your affordability.
3. One creditor and one payment – If you pay for multiple bills, there is a chance that one or two bills may get missed. It is also problematic to handle multiple bill payments. But, now with debt consolidation, you have to make a single payment, so, there won’t be any chance to have the payment missed.
4. Tax breaks – If you take out a home equity loan with a lower interest rate to pay off your credit card bills, you will get some tax benefit from the amount you make towards paying your mortgage.
5. Improved credit – As you make the payments through credit card debt consolidation, your credit history builds up and thus your credit score increases.

Cons of Credit Card Debt Consolidation

1. Debt amount can increase – As you will have some more money in hand now, you may think of spending more. But, you should keep in mind that if you do not use your existing credit cards usefully, then the debt amount will increase all the more. If this happens, you will never be able to end up debt free.
2. More time to pay off – The loan term is generally very long, so you will take a long time to completely pay off the debt.
3. Overall cost may be more – As the loan term is very long, your total amount of interest becomes higher. Thus, you are required to pay more toward the interest.

However, till you pay off your debt, you may not qualify for further loan. If you still want to take a loan in the future, you may get one with very high interest rate.

Nicole James is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. Her expertise is woven around various aspects of the debt industry and about credit card debt consolidation. With her e-books she tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of her works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court’ and, My Story- From Depression To a Smile’.

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How much debt is too much?
To determine your debt burden or overload, you need to calculate you debt-to-income ratio (DTI). DTI is the percentage of our gross income that goes toward paying our debts. To know if your debt is acceptable or high, simply add up the amount you spend to pay your debts every month, and divide it by your monthly income before tax. Then, multiply the result by 100 to arrive at a percentage. For example, let’s assume you earn a monthly income before tax of $5,000. Let’s also imagine you spend $800 on your monthly house mortgage, $500 on your auto loan, and $400 on your monthly credit card payments. Your debt-to-income ratio will be computed as $1,700 / $5,000 = .34. Multiplying this by 100 will give you a debt-to-income ratio of 34%. This example means that you are spending more than one third of your monthly income in paying your debts. A ratio of less than 30% is ideal, while a ratio of more than 40% is a red flag for a potential financial disaster. Since our example arrives at a ratio of more than 30%, it already indicates a yellow flag and should be given some significant attention.

Why you have too much debt?
Debt overload arises when a person’s debt-to-income ratio exceeds the ideal ratio. Debts that are considered burden come from a person’s inability to manage his debts, which may include failure to make a personal financial planning, organizing and controlling. Debt-to-income ratio has two main factors: debt and income. Thus, the reasons of too much debt lie on these two elements. People incur overloaded debts because of unnecessary expenses as indicated by their excessive use of credit cards. They also don’t strive to increase their earnings to cover their fixed monthly obligations. This can be illustrated by our example above which shows an extra income not sufficient enough to absorb its home mortgage and auto loan monthly payments.

How to manage debt overload?
Managing your debt overload is a practice you should always practice overtime. It should be a continuous process from financial planning, to personal motivation, and to ensuring that the process is effectively executed. Home mortgage and car loan are fixed and basic loans we should pay regularly. However, credit card expenses are variable and can be controlled to reduce them and improve your debt-to-income ratio. There are also other personal expenses which we can trim down such as our entertainment and leisure expenses, traveling expense and other expenditures that are not necessary to our healthy living. To have a favorable ratio of our debt against our income, we also need to increase our earnings. As mentioned earlier, we cannot just control our long-term loans such as home mortgage and auto loan. Hence, we should focus on generating more revenue to warrant an increase in our income. An increase in income means an increase in our production (for businessmen) and increase in our work force (for professionals and employees). Lessening our monthly expenses requires a lot of self-control and patience, while increasing our income requires more hard work and diligence. Without these habits, we cannot get rid of those extra debt burdens.

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1. I want to be free rather than become a slave

“The rich rules over the poor, and the borrower becomes the lender’s slave.” – Proverbs 22:7

2 I don’t want to lose credibility

“It is better that you should not vow than that you should vow and not pay.” – Ecclesiastes 5:5

3. I don’t want to be a wicked person

“The wicked borrows and does not pay back, but the righteous is gracious and gives.” – Psalm 37:21

4. I don’t want to disobey God

“Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go, and come again, tomorrow I will give it”—when you have it with you.” – Proverbs 3:27-28

5. Interest expense is usually greater than interest income
The finance cost of debt or loan is usually greater than the revenue generated by saving money. Hence, it is still financially better to pay off debts than to save money. If you are an investment savvy and you are thinking that the return on investments will become higher compare to the interest expense, then review numbers 1 – 4. Besides, not all ROI rates are higher than a certain interest rate. Also, interest expense may become tax deductible, but interest income and investment income may also be subjected to income taxes.

Conclusion:
If you have debts, then you should pay off them before they become due. This is to avoid unnecessary finance charges, preserve your credit credibility, promote good relationships with God and of course with people, and achieve your financial freedom. However if you have cash now, but your debt is not yet due, you can invest that money in a low risk investment schemes (e.g., money market instruments, mutual funds, et cetera) to earn more money and have a better chance of paying your debt when they become due.

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3. Why You Have Too Much Debt

Assets = Liabilities + Equity

As we transform this to,

Liabilities = Assets – Equity

As we understand, personal assets and equity are,

Equity = Paid-up capital + Cumulative Net Income (losses)

And since,

Net Income (loss) = Income – Expenses

Therefore we can say that,

Liabilities = Assets – [Paid-up capital + (Cumulative income – cumulative expenses)]

And in our personal parlance, considering a one year equation, assets as properties, paid-up capital as zero, and expenses as our wants and needs, this equation can be transformed as,

Debt = Property – Income + Wants

If today we have the following:

Debt = $1,000

Property = $1,500

Income = $2,500

Wants = $2,000

As we place these values on the equation, we will arrive to this:

Debt = Property – Income + Wants

$1,000 = $1,500 – $2,500 + $2,000

Now if we want to make our debt of $1,000 to zero, we can opt one or all of the following ways:

a.) Sale a property amounted to $1,000 and pay-off our debt amounted to $1,000

Upon sale of property at book value amounted to $1,000,

($1,000 – $1,000) = ($1,500 – $1,000) – $2,500 + $2,000

We can pay extinguish our debt.

$0 = $500 – $2,500 + $2,000

This application is simple. If we want to get rid of our debts, we may sell some of our properties and use their proceeds to pay-off our debts. But we must also remember not to sell assets that are generating substantial revenue for us. This means, we must analyze first the best decision – whether to benefit from an asset through its proceeds or through its generated income. This is because generated income can also be used to pay-off our debts.

b.) Earn additional income of $1,000 without selling your property (this can be done through rendering of services), and use the additional income of $1,000 to pay-off all debts

By earning an additional of $1,000,

($1,000 – $1,000) = $1,500 – ($2,500 + $1,000) + $2,000

We can eradicate our debt.

$0 = $1,500 – $3,500 + $2,000

Another way to eradicate debt is to earn more and more income. This means we need to be diligent and innovative to do that. But we should also bear in our minds that big income is useless if we also have huge expenses. Hence, we should also have the virtue of self-control and discipline. To increase our income we need to work harder, longer and wiser. The people who usually incur debts are those who don’t earn enough money to cover their expenses or repay their obligations.

c.) Reduce our wants (expenses) by $1,000

By reducing our expenses by $1,000,

($1,000 -$1,000) = $1,500 – $2,500 + ($2,000 – $1,000)

We can reduce our debt to zero.

$0 = $1,500 – $2,500 + $1,000

Spending more than you can afford is one of the top reason why people are trapped into debts. In the equation, it is very clear that if we will cut our expenses, we can also cut our debts. Since our expenses are originated from our needs and wants, we should know how to prioritize things. This can be done, by spending based on our needs instead on our wants.

I hope this simple article will help you win your battle against debt. Always remember that financial freedom is the ability of a person to harmonize all the financial elements around us, which include our assets, equity, income, expenses and debt itself.

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2. What is a statement of financial position (balance sheet)?
3. 10 Attitudes that Help You Get Out of Debt

Prevent the battle
Prevention is still the best cure even as against our debts. The supreme warrior is one that can win a war without going into a battle. This is possible through planning and making precise calculations. The person who wins is the person who has the best plans and most precise calculations. Therefore, before we spend, let’s first calculate and see to it that it is according to our strategic plan. This is to assure that we will not be fallen into the necessity to rumble debts.

Be a great leader
To gain victory over our every endeavor, we should become great leaders of our selves. We should manage and control our selves efficiently and effectively. Great leadership is a combination of gentleness and strictness. Hence, be gentle on your expenses and be strict on your self-imposed rules and policies.

Be a great spy
This is applicable to the things around you and to the things within you. To achieve triumph, we should always gather enough information that will help us decide the best financial decisions. Let us research every loan products like payday loans, debt consolidation, unsecured personal loans, and other loans if they are advantageous or disadvantageous to us. Let us be wise and be careful not to fall unto their traps. More importantly, we should also take the best efforts to know our selves – just like spying on ourselves. Monitoring and tracking our personal financial behavior (our weak points and strong points) will help us place our selves in the right financial position.

Energy and rapidity
Being in war means we need to set ourselves on fire. We need to defeat our opponent by attacking him like a lightning, which is full of force and speed. To annihilate our debts, we should act at the earliest possible time – NOW. There should be no time that will be wasted, as well as strength that will be wasted. We should preserve our momentum, which is also a very important ingredient in winning every battle. Therefore, if you are not doing anything to extinguish your debts, start doing something now. Do what should be done and stop what should be stopped.

Deploy your army
When battle has not been prevented and you have no choice but to face that battle, then you need to position your army. In your war against your financial woes, your army consists of your self as the general or commander and your men as your assets and resources. Your resources could be tangible or intangible and humans or not humans. Your tangible resources could include your properties (real estate or personal) and your intangible resources may consist of your attitudes, knowledge and skills. Your human resources may compose of your relatives, friends, allies and affiliates. Your not human resources could include your location, weather, economy which are advantageous to you. Now, all you have to do is to gather and organize all these resources of yours and deploy them effectively as your army to defeat your enemy – your debts.

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3. The Best Ways to get out of Debt

Knowing is good, but understanding is better. That’s why, let’s not just memorize the following formula but let’s understand it. The following formula and explanations are derived from the financial accounting equation, Asset = Liability + Equity.

Liability = Asset – Equity

The above equation gives us the understanding of the following:

1. Increase in asset without increase in equity will increase your liability
This means that if you obtain cash or acquire properties and other assets without accumulated earnings, you will resort into debts. The debt trap is usually found behind our needs and wants. Once we desire for something we cannot afford to pay for cash, we call the lenders and the creditors for help. Therefore to prevent debt, we should not buy something beyond our earning.

Don’t increase your asset if your equity cannot afford that increase.

2. Decrease in asset may reduce your liability
One certain way to decrease or extinguish your debt is to pay-off them. If you have cash to settle your obligations, then settle your debts. If you have receivables, then exert your best effort to collect them so that you can use them to pay your own liabilities. If you have assets that don’t generate income, you may sell them and use the proceeds to repay your debts.

Cut your asset and use that to cut your debt.

3. Decrease in equity without increase in asset will increase your liability
Equity is equal to infused capital plus accumulated earnings (losses) minus capital drawings or dividends. This primarily means that if you incur losses or don’t earn enough profits, your chance of getting out of debt will fade.  Net income or profit is directly related to your revenue and inversely related to your costs and expenses. Moreover, revenue is directly related to your assets such as cash and receivables while your cost, purchases and expenses are directly related to your liabilities such as accounts payable and accrued expenses. Hence, to decrease or zero out your liability, you should increase your revenue to collect more cash and receivables and efficiently minimize your cost and expenses to avoid more trade payables and unpaid expenses.

Increase your equity to prevent increase of your liability.

4. Increase in equity may reduce your liability
As discussed in the preceding paragraph, increase in your cumulative earnings will increase equity. If your equity increases, you can be able to finance your needs not by means of debts but by means of the assets generated from your revenue, such as cash and receivables generated from your sales. Therefore, strive for earnings to increase equity and to get out of debt. Work well to increase your salary income. Do business well to increase your business income. Also, avoid unnecessary costs and expenses to avoid losses that will result to deficiencies in your equity.

Conclusion and the real secret formula:
The secret formula to get out of debt is simply you. You, being the one who is capable of knowing and understanding the basic formulas (e.g., accounting equation, financial ratios, etc.,) that the world has provided us. You, being the one who can control your effort in accumulating profits. You, being the one who can manage your behavior in spending your money.  And you, being the one who can only defeat the poor person within you.

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2. Why You Have Too Much Debt
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1. Honesty
Can honesty become one of the best policies in avoiding debts? Yes it is. The truth can set us free from future financial obligations. One of the reasons why we fall into the hands of creditors is our attitude to go beyond our financial reality. Have you ever promised your friends, wife or children something you cannot afford? Then because you don’t have the money to buy it, you resorted to owe some bucks from lenders? Sometimes people hide their true financial condition and ability to pay when they approach creditors. Consequently, they owe money they can’t afford to pay. Ultimately, these people are drowned into the depth of debts.

Another example of avoiding future debts is reporting truthfully and faithfully. Remember our income tax returns. Submitting false returns will lead us to penalties and charges that will add to our payables. That’s why to minimize our debts and future debts, let’s live by the truth.

2. Patience
Patience is a virtue. It’s also a virtue that will help us avoid debts. People sink into debts because they don’t usually have the patience to wait. When we find things that we really like (gadgets, cars, etc.,), sometimes we rush our selves to buy them. We grab it though we don’t have the cash to purchase them. As a result, our pockets become exhausted and we fall again in the hands of creditors.

3. Humility
People who are extravagant tend to spend more money than people who live in a humble life. A person who lives a simple life is not prone to debts. I believe I don’t need to explain this further.

4. Diligence
Debts are not only caused by spending, it also caused by earning less. However earning money is not as easy as 1…2…3. To earn an income that will cover our expenses, savings and funds, we need to work hard. If we do not work with diligence, expect your ship to be washed out by the waves of debts.

5. Preparedness
Prevention is the best cure. A financial plan can help us avoid excessive liabilities. Furthermore, planning is also the first function of management – a function that will help us manage our debts. This includes building of emergency funds, legal tax avoidance, budgeting and other ways to get rid of unpleasant payables. People who don’t have emergency funds are trapped in the debt cage when emergency expenses (e.g., hospital bills and repair expenses) come. Taxpayers who have not done tax planning are often surprised by their tax payables when due comes. Finally, people who don’t make a budget usually fall into a dark financial limbo.

6. Flexibility
Flexibility is the ability of a particular thing to adapt in its changing environment for its survival. Sometimes we make a plan, but our plan fails. For this reason, we should make our plan flexible. This means, we need to always have a “plan B” or “even a plan C” to backup our first plan. It’s never a bad move to amend something if that amendment will give us better and more appropriate results. Preparedness should always be teamed up with flexibility. That’s why we should always check out our solvency (the ability to pay obligations when they mature) and liquidity (the ability to convert assets in to cash).

7. Independence
One reason why a person becomes poor is the absence of his independence. Too much reliance to other people makes a person slothful. Although it can be beneficial to rely and depend on other people, this advantage is only temporal. What if those people will be gone in the wind? What will happen to the persons who live by depending on them? If we learn to stand in our own feet, we can stand alone even when the time comes that the people we depend on leave us. That’s why if I will choose between salary (employment) and capital (entrepreneurship) – I will choose capital. This is because salary depends on employers, while capital depends on ourselves.

8. Intelligence
Needless to explain lengthy, this virtue is our guide in making critical financial decisions. Planning is weak if it’s not strategic. Likewise, diligence is inefficient without intelligence. If we want to keep away from debts or get rid of them, we need to use our brain to analyze, learn and act what are the right things to do to achieve our financial goals.

9. Obedience
This simple attitude requires not much intelligence but only understanding. Simply, if we will follow the laws and the rules, we will not be liable for their penalties. If we follow our loan’s terms of payment, we will not incur any penalty or surcharges. If we will pay the right taxes, we will not be charged of interests, penalties or compromise payments. By just obeying the law we can legally escape from financial liabilities, as well as criminal liabilities.

10. Self-control
Last but not the least is the self-control or self discipline. Self-control is the ability of a person to resist from things that may ruin his goals. This attitude is the key to achieve our financial targets. Although this is probably the most effective attitude that will aid us to get rid of our debts, this is also the toughest virtue to have. However, through patience, determination, and constant training of self discipline, we can be a model of self-control. By being capable of refraining from habits like extravagance, laziness, procrastination, dependence, recklessness, boastfulness, ignorance and other bad habits that attract life’s financial obligations, we can all live and enjoy life without debts bothering us.

There you go the ten attitudes and habits that will help us get out from our debts. We can also add carefulness, thriftiness and resourcefulness. You don’t need to become financial experts or gurus to understand these values and manners. So what are you waiting for? Practice and enjoy them!

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The first thing you can do – and the most obvious – is to cut back on your spending – dramatically. If you have credit cards, STOP using them. Use Debit Cards in their place. The reason is simple: a Debit Card is generally tied into a cash account you have (checking account or savings account) and you can’t use the card unless you have money in your account to cover your purchase.

Sadly, credit cards allow you to buy now – pay later. The problem is that most people “don’t pay later.” So, put your credit cards away or, better still, cut them up and throw them away. They are part of the reason why you’re in debt.

If you owe thousands of dollars total for all of your credit cards, seek the services of a Debt Management company. They will arrange a payment plan with all of your creditors that reduces your debt by eliminating fees for penalties and interest and lowers your monthly payment, as well. You can cut your debt by as much as 60% using this service.

If you’re having difficulty paying your mortgage, seek mediation with your bank. It’s currently available and if provided to you can lower the value of your mortgage … and your monthly mortgage payments. This plan is designed to help you afford payments … make the payments … and stay in your home.

If you are hopelessly in debt and can see no way of paying your way out (you can’t even afford the help you’d get from debt consolidation that would reduce your credit card payments), consider filing for bankruptcy. It sounds terrible, but …

Bankruptcy can wipe many of your debts off the books immediately. Once filed, you would not have to make car payments (you’d lose the car, of course) and you would eliminate credit card payments. They would cease to exist. And you would eliminate the pressure that has been dominating your life.

Of course, bankruptcy can cause damage to your credit rating, but that is a problem you already have. And you will be able to re-establish your credit by paying future debts in a timely fashion.

Clearly, there are a number of ways for you get out of debt. They are all available to you right now. Remember: the single best way for you to get out of debt is to start practicing fiscal responsibility. That means you need to spend responsibly. Purchase goods or services only when you can afford to pay for them. It’s that simple.

If you follow that simple rule and live within your means, you are assured of living life comfortably and without unnecessary financial pressure. It’s a great goal … a very good lifestyle, too. Start living your life that way today.

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Simply stated, a Debt Management Program is designed to consolidate and reduce several monthly unaffordable payments into a single affordable payment. Here is how it really works …

Assume, for the moment, that you receive invoices for ten credit cards each month. Your minimum monthly payment is $1,000. You have trouble making those ten payments and, as a result, have fallen behind. In some cases, you are several months past due. As a result, you now owe the principal (money actually borrowed when you used the credit card for purchases) and rapidly-accumulating late fees, penalties and interest.

The laws in the United States favor the credit card company. That means it is possible – and highly likely – that the credit card debt (for one card) that once stood at $500, for example, may now be as much as $1,000 or more. It’s true. Late fees, penalties and interest can drive the original debt to a point where it is greater, by far, than what you actually spent.

That’s where the Debt Management Program comes into play. They can really help … if you’re careful and select the right company to establish a payment arrangement with your creditors (credit card companies). You really have to be careful because many companies providing this service are unscrupulous.

When you decide to hire a company to consolidate and reduce your debt and your monthly payments, check online to make sure that the company you’re considering has received favorable reviews from former customers and that it has not been cited for questionable business practices. Often, you can get this kind of information from your city’s Chamber of Commerce or the local branch of the Better Business Bureau.

Take the time to do this research because it is your money that may be at risk if you choose unwisely. Once you have selected a Debt Management company to help reduce your debt, a representative from that company will work with you to achieve a specific goal. He or she will contact each of your credit card company creditors to advise them that you are seeking a payment reduction.

Your creditors want to be paid. In almost every case, they will reach agreement with your Debt Management representative to reduce or eliminate fees and interest. The end result will be as follows: you will no longer have to write ten checks each month that add up to $1,000. You will, instead, write a single check for an amount that is likely to be about $500 or less.

It’s true. Your payment will be reduced each month by 50% minimum, often more … as much as 60%. There is another benefit, as well. Your overall debt will also drop because your creditors will forgive the late fees and penalties that have driven up the total balance on your credit card.

That savings can also reach as high as 50% to 60%. It means this: if your current credit card debt, in total, is $50,000 a negotiated payment plan can reduce that debt to $25,000 … even less.

Consider a Debt Management Plan today.

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