The debt hangover after holidays may be a common issue to many people. The shopping carnivals and sale promotions may add on to the chances of falling in speed debt. Most purchases may involve the usage of credit cards, and may at times lead to over usage. Sam too had issues with his credit card debt early this year. The holiday trips with his family, purchases from year-end sales and Christmas offers, all put him into excess debt on his credit card. Sam had been using more than one card and debts on all the cards were too high that he was stuck with monthly payments this year. Few months passed without him making any payments and he started getting collection calls. His financial position was getting worse as he could afford only his family’s expenses. Sam then signed for the debt reduction program with Freedom Debt Relief and now believes that his debts will be paid back soon. This holiday debt hangover may be a major issue with many. People don’t realize that the misuse or over use of credit cards may only lead them into heavy debts.

Having more than one credit card may help you with keeping up your credit scores. But, the over usage of the cards may not be safe. Sam had two credit cards, one with a higher interest rate than the other. He had not used the high rate card much due to its higher interest rate. The high rate card carried less balance, but the other low rate card had high balance. He always had made the minimum payment due on both the cards, but it didn’t seem to help. Advice from experts suggested for him to clear off the high interest rate card with low balances first. He was also given a suggestion to use more than one credit card. Sometimes, people may have more than one card but may not use all of them. They may have got the card for credit score purposes. This may be good, if the cards not used don’t carry any fees. If the card demands any fees, then it may be considered better to cancel the card. Cancelling credit card though may have effects on the credit score. Still, it may be considered better to cancel the card. The credit score can be repaired by making payments on other bills on time.

The most often received suggestion from experts and debt counselors on debt relief is to control the expenses by making budgets. The usage of credit cards for every minor purchase can be avoided. There are many debt relief programs offered by debt relief companies. Most of the programs begin with assessing the individual’s financial situation. The programs may help to make budgets and trace the cash flow. Depending on the intensity of the debt, the debt relief program may be suggested. Manageable debts can be reduced through some of the programs like debt consolidation, debt management, credit counseling and others. Unmanageable and heavy unsecured debts can be reduced through debt settlement programs offered by debt settlement companies. The debt settlement programs may help people got over their unsecured debts like credit card debts. The program may involve holding talks of settlement with the creditors and help reduce the balance owed. The program may demand making monthly payments to the company, towards the settlement program which may then be settled to the creditors.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief