Thursday, 10 September 2009 13:20

How to Keep Your Head Above Water When You're in Credit Card Debt

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How to Keep Your Head Above Water When You're in Credit Card DebtCredit card debt is a problematic issue for many Americans. It has been estimated that the average American family has around $8,000 in credit card debt. While people do have control over their spending decisions, many people who use credit cards have found themselves entangled in a labyrinth of hidden traps and fees, sometimes seemingly designed to milk users of as much profit as possible. Unfortunately, many people end up making payments for most of their life without getting out of debt, so this can be a hard trap to escape.

For instance, many credit card purchases can end up costing one 132% more than if one paid cash. This means that $50 dinner you put on your card could end up costing you $116 by the time it’s paid off. This is because the minimum monthly payments on most cards are 90% interest and only 10% principle reduction, and the average person only pays the minimum payment. Because of this, you could still be paying for that dinner decades later. On top of which, credit card companies are usually able to raise interest rates at will, a matter of fine print in the contracts, seldom read and less understood.

Tragically, families have even been forced to file for bankruptcy when these debts got out of their control. Even after such bankruptcies, many still receive credit card solicitations, perhaps because credit companies know that the law does not allow a person to file another bankruptcy claim within seven years.

The problem of mounting, apparently unpayable debt-load, aggravated by pressure from the credit card companies, can drive a person to desperate and irrational actions, such as re-mortgaging the house to pay for the plastic. This does not reduce the debt, only relocates it, and puts the family home at risk. These stresses have effects on all areas of life, for instance 70% of marriages ending in divorce are triggered by financial problems.

However, one is not bound to be a slave to The Card for the rest of your life, and there are things a person can do to get out of debt, without relying on a deus ex machina like winning the lottery.

Clear Financial is a debt settlement company offering recourse to people who are at the end of their rope. “Debt settlement is an agreement in which both debtor and creditor resolve to settle a debt for less than what is owed. If negotiated properly, your debt can be efficiently, and in many cases, significantly reduced,” Clear Financial’s website states. “We negotiate credit card debt and other unsecured debt between you and your creditors. We are a team of professional negotiators who are trained to effectively negotiate the largest possible reductions in principal and interest from your creditors.”

Clear Financial offers new hope, allowing people to become debt-free in as little as three years, sometimes or less, and unlike many credit counseling programs, Clear Financial is not run, openly or otherwise, by the credit card companies. In fact, Clear Financial bases their fee on how much they save you, so you know they will negotiate the best possible settlement with your interests in mind. “Once the creditor has accepted the payment in full, you are free of that debt forever. Clear Financial will continue to work on negotiating all of your debts, until you are finally free from the once overwhelming debt that you started our program with.”

To find out more information about Clear Financial, go to or call (866)-659-7966.

Read 1374 times Last modified on Wednesday, 21 October 2009 16:10