Credit Card Companies Driving Customers into Debt

Getting behind, missing a payment or going over your credit card limit can cost you big time. American consumers are finding themselves behind the 8 ball as they have an average of more than 9,000 dollars in credit card debt.

In a 2 income family, all it takes is one wage earner losing their job or getting their hours cut to fall behind. Once you fall behind it becomes hard to get back on track again as the money that was going to pay your monthly card payments is now being used for living expenses.

First, your credit card company will charge you late fees and over the limit fees then they'll raise your interest rate. Next they will charge you that higher interest rate
on your balance as well as the fees they have added on. Soon you're 3 payments down with no way to get back even in sight.

Now what do you do?

First step is to call your credit card company. Many of them will have a reduced payment program you can get on for 3 to 6 months. After that they'll expect you to be back on track.

If things get bad enough you could file bankruptcy but you'll still be stuck repaying 40-60% of those credit card bills. That bankruptcy will be on your credit file for 10 years. The cost of the financial education you didn't get in school is a big one.

Your best bets may be trying to reduce expenses by requoting things like house insurance and car insurance, giving up cable t.v. or eating out as often. If you still can't bring your expenses in line with outgo you may need to add a part time job or start a network marketing business to add additional revenue.

For those who are to the point of being behind on all your credit cards and other debts it may be time to work on a debt settlement with your creditors.If they look at your credit and see that you are behind with all your payments then they'll be likely to negotiate.