Learn How to Get Out of Debt

By K. D. Nelson, Professional Accountant and Author of the book "Laws of Managing Credit Card Debt".

During the third quarter of 2018 consumers spent $5.5 billion using their credit cards increasing the amount of outstanding credit card debt to $1.041 trillion, based on the November Federal Reserve Consumer Credit Report. And, 38 percent of credit card users say they carry a monthly balance, according to the 2018 Consumer Financial Literacy Survey, by the National Foundation for Credit Counseling.

How can I payoff my credit card debt?

To provide a solution that will work for you. Here are 3 financial advice tips to help you get out of credit card debt:

1. Seek Financial Guidance.

If your credit card debt is a financial burden it is time for you to seek financial guidance and improve your financial well-being. Educate yourself to learn how you can reduce your debt without filing for bankruptcy or getting a debt consolidation loan. You would be in better shape financially, if you had financial guidance that showed you how to payoff credit card debt.

2. Follow a Proven Plan.

Follow a proven plan that can help you get out of credit card debt and allow you to continue to use your credit cards. You should maintain a budget of your monthly expenses and keep a record of the amount of debt you owe to determine your financial needs. Having a plan would prevent you from getting deeper into debt and accumulating a lifelong financial burden.

3. Use a Debt Reduction Strategy.

A credit counseling agency will setup a payment plan with your creditors and charge you a monthly fee of $35.00 to $50.00 for a period of three to five years. Filing a chapter 7 bankruptcy to discharge your debt can cost $1,500.00 to $3,000.00 in attorney fees. Using a debt reduction strategy provides a solution to help you manage credit card debt and save a significant amount of time and money.

What is a debt reduction strategy?

A debt reduction strategy is a method you can use to payoff your debt. And reduce the amount of interest charges you pay and the time spent carrying a balance.

                                                                                                                 Source:  Laws of Managing Credit Card Debt

How can I payoff my debt without making a financial mistake?

The financial mistakes to avoid when paying off credit card debt are:

  • Filing for bankruptcy under chapter 7
  • Getting a personal loan to consolidate your debt
  • Negotiating a repayment plan with a credit counselor

It is essential that you learn how to manage your debt in order to maintain a better financial future.

The book Laws of Managing Credit Card Debt provides basic financial guidance with proven strategies to help you get out of debt.