How To Get Out Of Credit Card Debt


If you're like the average person, let me warn you ahead of time about what I'm going to reveal in the next few paragraphs. You may be angry after you finish reading this article about how you've been misled in the use of credit card debt.

The American economy is designed to make you work yourself to the point of exhaustion, only to build wealth for those very same companies you work yourself to death for - not for YOU!

The most eye-opening example of this is with consumer debt. For example, if you purchase your home with a conventional mortgage, you'll pay about THREE TIMES the amount over the life of the loan. Think about it this way. It's like taking your monthly mortgage payment and tripling it, then sending it off to the bank.

This is how much you will eventually pay back for the privilege of using their money. So you can see how two-thirds of the total amount you'll pay your mortgage company is primarily INTEREST payments. Interest is pure profit for the mortgage companies and a detriment to your financial well-being.

Ask yourself a serious question - does the Bank deserve to get so much of your hard earned money? Do you think that they are doing such an outstanding job that they should be compensated so well?

This simply means that when you come home from a hard day at work, you've just contributed to your bank or mortgage company's bottom line - not yours. THIS IS YOUR MONEY! I'm sure you've work hard to earn it. You'll most definitely have to pay taxes on it.

For instance, if you think your mortgage payments are out of control --consider credit card debt. If you have an average payment of $5,000 in debt, it will take you over 60 years to pay that debt in full if you make the minimum payments.

I don't know about you, but I wouldn't want to be retired and still making payments on credit cards I charged up in my twenties.

But you know the story, and you've probably heard it a million times -- the rich get richer and the poor get poorer. It's certainly not fair and I'll give you an easy way to get out of debt without loans or debt consolidation programs and more importantly, stay out of debt.

When you know how to invest the money you're currently spending on mortgage payments, car loans, credit card debt and any other type of monthly installment debt, you'll be pleasantly surprised at how quickly you can become debt-free.

Make a commitment to yourself to find at least 10% of your monthly take home pay to help you get out of debt. Look for ways to cut costs. Go over your cable bill, your cell phone plans, see if it still makes sense to keep your home phone, revisit insurance policies, etc. and see where you can redirect money to help you get out of your debt situation.

Now go and gather up your credit card bills, automobile loans, and any other installment loans you have and total them up. Keep in mind there's a difference between debt and expenses. Expenses are things like utilities, foods and taxes.

After you've come to grand total, look at the monthly payments for each debt. Select the monthly payment that is the smallest amount. Now, you'll add the money you've "found" to help you pay down this debt to zero. Once this debt is paid in full, take the money you were paying on this debt, add it to your second debt, plus the extra money you found and continue to payoff your debt in this manner.

It won't happen overnight, but you didn't get into debt overnight either. Consistency is the name of this game. By faithfully following this method, it will take the average person between 5-7 years to get completely out of debt.

Jamie Madison created a consumer website to help individuals get out of credit card debt. Get FREE access and step-by-step instructions to help you become and live debt-free. http://www.zapyourcreditcarddebt.com

MORE RESOURCES:
RELATED ARTICLES
Free Credit Reports - How to Maintain Your Credit Profile
Maintaining your Credit ProfileEvery consumer should be maintaining their credit profiles to ensure the highest scores possible. To do so, you must first order your credit reports from the three major credit bureaus: Equifax, Trans Union, and Experian.
How To Prevent Fraudulent Credit Card Transactions
What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?Customer wants to pre-pay for a yearDomain Name Registration for 5 years or moreOrders using free email address providers like Hotmail, Yahoo, etc.Usage of multiple cards to complete order.
What You Need to Know about Debt Negotiation on Credit Cards
Debt negotiation on credit cards is often referred to as credit card debt settlement. Whenever you make a credit card payment- or even pay your utility bills- it usually gets reported to one- or all- of the three main credit agencies.
Sound Advice For First Time Credit Card Users
If you are just entering the world of credit cards, there is important information you will need to know in order to manage your credit and your finances effectively. Establishing good habits and a good credit history now is the foundation for a solid financial future.
Like It Or Not, You Have A Score To Settle!
Like It Or Not, You Have A Score To Settle! (Part 1 of 2 on Credit Scoring)Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring.
Credit Score - Reporting Your Financial Health
Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not.
0% Credit Cards
These days, credit cards in the UK are competing with each other on two very attractive offers with a headline rate of 0%. These 0% credit cards will be either balance transfers; introductory purchases offers or a combination of the two.
Why Should You Use Credit Cards
Believe it or not, the way society, especially the commercial side, is set up these days, the only alternative to using credit is to pay cash for everything. But it's actually quite hard to do that.
Bankruptcy vs. Credit Counseling: What Should I Do?
Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.
Student Credit Cards 101
Almost all students have and use student credit cards. Some of the students use them wisely and build for them an early credit history but others accumulate lots of debts that would have to be paid off once the student life is over.
Preventing Credit Card Mess
Credit card debts problem is extremely common today. It is usually the first sign of longer term financial troubles.
Credit Card Debt: One Way To Avoid It
One of the biggest problems people have in these modern times is Credit card debt, and worst is USA. Simply because there have always been so many laws and regulations before you could have a card in the rest of the world, you can't for instance borrow someone elses card and go shopping because you always have to show some ID before they accept cards in Europe.
Credit Card Entrapment - The Secrets are Out
Have you ever wondered why your credit card bill is so high and you can't seem to pay off the balance? Well you are not alone in this. You should be aware of a couple of trick that they use and you probably don't even pay attention to it, but you definitely pay for it and BIG!The next time you open up your credit card statement, take a real close look to all the "junk" inside particularly the very hard to read insert Call "changes to you credit card agreement".
Bad Credit Credit Cards
Chances are you've gotten your share of offers like this in the mail Bad Credit Credit Card, Bad Credit Visa Cards and Credit Cards for People With Bad Credit. Re-establish your credit with a bad credit credit card, credit cards for people with bad credit or pre-approved Visa cards regardless of your bad credit history, some with low introductory rates and other perks.
Credit Card Shocker
Have you ever looked at your credit card statement? I'm not talking about just making sure that all the transactions are correct. I'm talking about looking at the finance charges.
Building Business Credit
Most businesses want to be able to borrow money when they need it, without the owners having to guarantee the loans personally. This means less risk to the owners.
What is on Your Credit Report?
Your credit report is a very important piece of the puzzle in your financial picture. It contains a historical record of your personal and financial information including a listing of your current and past debts and the timeliness of your payments.
Read and Understand Your Credit Card Statement
Have you ever looked at your credit card statement and ended up just scratching your head in frustration? Well join the club! But don't take any comfort in the fact that you have plenty of company, because lack of knowledge can cost you?.right on your credit report, and once there can stay with you a while.
Credit Repair Companies and Credit Counseling
Let's be crystal clear, right up front. Paying someone to "fix" your credit is a waste of your time and money, since the negative issues that are temporarily removed from your file will only reappear again in a couple of months.
Finding the Right Credit Card
There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than the hundreds of others you've seen? Take this little quiz to find out what you should look for in a card.