Right now it’s most likely that you have problems with debt due to excessive credit card usage. Credit card debt has become one of the most important debt problem for the average American. Why this happened? Well… because more and more people rely on credit cards, to pay their daily expenses. And the credit card companies took advantage of this thing and with the help of some really big interest rates they were able to get the most out of their client’s pocket.

You must understand that the credit cards are the biggest problem in your financial life. Just imagine how much money you could save if you stop using credit cards. On average a credit card interest rate is 12-30%. This means that if you borrow $10,000 you will have to pay each year for that debt up to $3,000. And as time goes by if you have more than one credit card maxed out, you will eventually end up paying everything you earn just to cover the interest rates and the late fees that you’ll have. And in the same time you will ruin your credit score. Click to continue »

The most important lesson I learned about getting out of debt is that you’ll NEVER get out of debt playing by the rules of your creditors. No matter what they say, they really don’t want you to get out of debt.

After all, the longer it takes you to pay off your debt, the more money they’ll make.

So trust me, you’ll NEVER get out of debt by just making minimum payments. Or by paying ridiculously high interest rates…or by paying late fees, overlimit fees, or any other fees charged by your creditors. Click to continue »

If you have more debts that you can handle, bankruptcy is NOT your only alternative. It is possible to repay your debts on your own, if you follow these five simple tips:

Make a budget

It is impossible to make a plan to repay your debts on your own if you don’t have a plan. When it comes to money, a plan is called a budget. As boring as making a budget may sound, without one, you have no hope of digging yourself out of your debt mess. Start by making a list of everything you spend money on each month, including rent, car payments, food, and all other expenses. When you subtract this number from what you earn each month you will see how much you have to repay your debts each month. Review your expenses and cut back wherever possible to leave even more money available to pay off debt. Click to continue »