Being more problematic is that more so now than ever here in the United States the normal American is swimming in credit card debt. With the economy the way it is being stuck in debt is not a pleasant thing. So what can these consumers do to become free of horrible credit card debts and live a more inspiring stress free existence?

For one there is CCCS programs, these programs used to be very beneficial for consumers trying to get out of debt. However lately consumer credit counseling has not been very advantageous, for one the credit card companies have been getting greedier by raising the interest payments. Plus credit counseling programs are normally rather expensive and most consumers in today’s economy are not stable enough to preserve such enormous payments to get out of credit card debt.

Next there is the option of obtaining a debt consolidation loan, but this can be rather risky. The reason a debt consolidation loan is rather risky is because you will turn your unsecured credit card debt into secured debt by taking the loan out against your piece of real estate. Which brings up the sad fact about debt consolidation loans you must be a homeowner to obtain such a loan, and in today’s economy more consumers are forfeiting their homes to foreclosure; thus making a debt consolidation loan out of reach for many.

Then there is the option of credit card debt settlement also known by many as credit card debt negotiation. This option to get rid of debt has become very favorable within the last couple of years. The reason being with debt settlement you have the prospect to put away a fantastic sum of money on the bills that you owe; plus you can become debt free rather fast, normally within a few short years.

Most debt settlement firms will be able to lower the amount that you pay out every month substantially, in some cases cut the payments in by 50%. Now for those really hurting from such rough monetary times this is pretty much the only realistic option of debt relief, other than filing for bankruptcy, which most are trying to avoid.

Even most recently with the gigantic bankruptcy of Washington Mutual, which needed to be bought out by JP Morgan. This had a crippling effect on the stock exchange, by plummeting almost 700 points in one day. It has also enormously effected the credit industry who are stealing from people with outrageous APR’s and unholy fees. On top of it all the housing industry is horrible for homeowners at the moment. House prices have been dropping considerably so Americans have been losing large sums of money on their properties.

The people who get hurt the most in this process are the American debtors. In particular those stuck deep in debt. Having to shell out on high credit card debts every month does large damage to one’s bottom line at the end of the day. When you throw in high interest rates as well this situation takes a new meaning of bad. And as of right now the average American family owes over ten thousand dollars in credit card debt alone, never mind their other debts such as car payments and mortgages.

One wise way to become free of this trap is the method of debt settlement. This debt settlement agency will allow you to pay back only a fraction of what was owed on the debt in the first place. Plus the fact that you will be able to become debt free within only a few short years as well. Freeing yourself and your family from the shackles of credit card debt for the rest of your life.

Even though debt reduction programs is a great way to becoming debt free it is not the only way. There are other methods such as credit counseling or debt consolidation loans. However it is the most effective allowing debtors to save the most amount of capital. But whatever you do if you are swallowed in debt your first goal should be to become free of the debt burden as quick as possible. There is nothing worse for someone’s finances then boat loads of credit card debt that will never be paid off. Achieve debt relief today.

You may have never had anything to do with debt relief and have no idea what anything means or how to understand your options. Don’t fear, knowledge is key. All you need is a little bit of knowledge and you will be able to face your debt relief options much more confidently.

What are my basic debt relief options?

Create your own budget, rearrange your finances and organize it yourself.

You are probably beyond this if you are considering professional help but it does not hurt to make sure. Work out all your payments, combine credit card debts into one card if poss and create a fixed strict budget. You may be able to pull through.

Creditor Negotiations

You will find numerous companies and people who say they will help negotiate lower payments with your creditors. Sometimes they will be known as debt management, debt managers or mediate negotiations. This basically involves them calling round, informing them they you cannot pay and threatening that you will go bankrupt (this will result in your creditors getting almost nothing) and arranging lower settlement feeds or flexible payment plans. Obviously companies charge for these services so always be confident and weary. Don’t get threatened or rushed into a deal and read all small print. Fees can be very creatively hidden even if the company claims to be non-profit. Find the right company at the right price and this may be the option for you.

Debt Consolidation

This word is everywhere you look. It could be the right option for you but you really have to look into it. Debt consolidation basically involves you getting one large loan to cover all your debts. This loan may be at a lower interest rate and can often be paid back over the course of many years giving you a lower monthly payment. Many debt consolidation companies will also seek to act to control your spending too and act as a kind of accountant. Theoretically your spending is out of control so this may be good for you. A good company will also provide many tips to help you through your everyday life, whilst in debt. Again these companies all make a profit. You should evaluate the offers very closely and check all loan interest rates. Sometimes very large fees are hidden in the principle loan or interest rises to a very high rate after an initial low period.

Bankruptcy

This is not really debt relief but rather the last option. You lose a lot during bankruptcy and it can be highly stressful for all involved. Think long and hard and look at EVERY alternative option before even considering this.

Bankruptcy is a federal court process that is in place to help people (consumers and businesses) get totally rid of their debts or repay them under the bankruptcy’s court protection In America there are two types of bankruptcy, Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is acted out through liquidation: Property that you own that is not exempt under your state’s laws may be liquidated (this means sold) to pay back some of your debt. Chapter 13 bankruptcy is more common. It involves a reorganization and is aimed mostly at consumers. Generally you get to keep all of your property. It is arranged for you to make monthly payments over the course of three to five years. This repays all or some of your debt.

Always be aware that bankruptcy can be very complex and can have complex and varied rules depending on your situation.

With all of these options look out for the scams, try and find genuine testimonies and always check alternatives in a though manor.

So, what option should I choose?

This is something that you should take a lot of time and honest reflection deciding. You should see if there are any government or charity run advice services that you can contact (not services that are trying to sell you services, just advice). Talk to friends and family, they may know people who have gone through this or may have gone through it themselves. Read everything you can and make sure you are confident that you understand your personal circumstances. If you are looking at various services then gather as much info from them as you can. Call them or request that they send you info via the net or post.

If you keep yourself confident, knowledgeable and composed you should be able to make the right decision to help reach your debt free future.

1. Make an expenditure list

Write down everything you spend. You will be surprised at some of the things you spend money on, that you do not have to. Just think if you cut out the journey to the coffee shop every morning you could save anywhere between $10-$30 a week. That probably equivelents at least one debt payment per month. Once you have the information written down you will be much more motivated to not spend in certain areas. It may even help you become a gourmet home cook or cut down on smoking.

2. Make best use of credit cards

See if any of your credit cards have interest free offers or transfer any credit card debts to a new interest free credit card. The 6-12 months in interest relief could give you the money to pay off another debt.

3. Catch up on the world for free

Watch the morning news on the tv or read it on the internet. You will save around $5-7 dollars a week in newspapers.

4. Assess all your household bills and expenses

See if there are any cheaper suppliers. I know I save a bundle when I combined my gas and electricity payments. You may also be able to cut back on certain cable channels or even combine internet / phone and TV. You may be able to find a cheaper supermarket for food or buy your gas from another station on your daily route.

5. Budget for the coming month

Look at your household income and work out a reasonable budget and if you can include a little cash to spare for those “out of the blue” moments.

6. Separate your money from debt money

Create a new bank account or, if your account allows it, a new pot. That way you can easily keep track of how much is left as the month draws on.

7. Leave temptation at home

Leave all credit cards, debit cards and check books that are unneeded at home. If you never need these cards, keep the account details on file and cut them up. I always enjoy seeing how many pieces I can cut a card into!

8. Get a long term plan

If you are in a large amount of debt then there is no point fooling yourself into thinking that it will disappear in a flash. Set yourself up for the long haul and it will be much easier to stick to and not get depressed.

9. Join Ebay and have a yard sale

“One man’s junk is another man’s treasure”. Look around your home, if you have been there a while, chances are you have a lot of stuff that you really don’t need. Collect it all together and sell all the quality items by auction on ebay. The rest can be sold in a yard sale. You may end up with a bigger lump sum than you imagined.

10. Make some more money with your free time

With some of the free hours you have every week you could make some extra money from your hobby or find a part time job. I started blogging as a hobby and ended up making money on the side. Now it is my full time job. Your knowledge should not be undervalued. You may be an expert gardener or be able to create some great art to sell. Alternatively a couple of hours working at the a pizza restaurant or local store may actually be fun and prevent you from spending.

11. Ask for a raise

Most people feel undervalued at work. It is said “if you don’t ask you will not receive”, so ask your boss and you may be surprised. Company policy is often never to offer a raise unless asked.

12. Lose the shame of debt

Debt is very common and many people are in the same situation as you. If you let your friends and family know then the attitude towards you will be a lot more open and people will be more willing to spend time with you in non-spending situations. You may even be forced to take some free drinks from close friends on the occasional Friday night. Don’t be ashamed, these are your friends and you will be there for them one day too.

13. Speak to a professional

This is something that will go hand in hand with these tips and many professionals will give you many more ideas on top of these. You may be able to consolidate some of your debts or even wipe some off or propose settlement offers.