Credit card debt is quickly on the rise in the United States and the rapid growth is somewhat worrying. According to Federal Reserve’s consumer credit department, Americans owed almost $2 trillion in debts in 2003; that was seven years ago! The number one reason being a lot of Americans spend way more than they earn. The American so-called ideal lifestyle is what compels most of us to swipe our credit cards more often than we really should. Credit card companies also now offer lower interest rates so most of us believe that creates a safety net for us to spend more without considering the consequences.

It is definitely advisable for you to start considering getting some help in debt management if you feel like you are heading towards financial trouble. The signs are usually quite obvious but most of us would never admit that we are having problems with our finances until it is too late. Some of the signs that you need professional debt management help are as follows:

– You are only paying the minimum balance every month;
– You take frequent cash advances;
– You borrow money to pay off your debts;
– You are denied credit due to low credit scores.

If you are going through any of the above, it is time to admit to yourself that you are facing a problem and that you need a professional third party to guide you through the process of clearing your debts. It is not always easy to trust a stranger with your financial woes especially since the majority of us do not even share our money problems with our closest friends and families. But the professionals are trained to be objective and will try to help you manage your debts without resorting to filing for bankruptcy.

One of many ways to get your debts in check is with the debt management and debt consolidation services offered by many companies that specialize in helping the public manage their personal debts. Basically, consolidating your debt means you will be taking out a new loan to pay off your existing loans. Be advised though that you should never ever consider taking a loan from an unlicensed money-lender as that will put you in a whole other definition of trouble. Check with your professional consultant to see if it is a feasible option for you to consolidate your debt before you actually do so. This is to avoid adding more debts to your portfolio and end up paying a much higher interest rate than before.

It is always essential that you restructure your debts so you could be more in control in managing your own personal debts. By consolidating your debts with the help of financial consultants, you will be able to discipline yourself in terms of consistently paying off your debt. Many banks now offer low interest rate on loans so as long as you start to consistently pay off your consolidation loan immediately after you paid off all your other debts, you are on your way to freeing yourself from being buried knee deep in debt.

All of this might sound peachy to you but be advised that it is always best to seek help from a professional before you decide to consolidate your debts. Your consultant will advise you on the best option as there is no one standard formula on how to settle your debts. Under different circumstances, debt consolidation might not be the best option for you so you might want to consider other debt management relief options such as debt reduction and credit counseling. Your consultant will advise you on the various ways to settle your debts while giving you the freedom to make your own informed decision.

You need to bear in mind that your consultants will advise on your financial situations but ultimately it lies on your own initiative and determination to settle your debts for good. You need to be focused and disciplined in order to permanently be rid of your debts. So although your consultants offer many solutions to your predicament, remember that it is all up to you to dig yourself out of your debt grave.

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Category: Finances
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