Credit card bailout

Reduce your credit card debt with these simple steps

How can I start reducing my debt?

The biggest enemy is credit cards.  $1 of every $3 in consumer debt is unsecured credit card debt, according to the Federal Reserve System.  By making only the minimum payments on their cards, debtors sink further and further in the hole.  Collection agencies start calling.  Eventually Debt Settlement or bankruptcy may be the way out. 
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If you are barely treading water, take these steps:

• Transfer your credit card balances to low interest rate credit cards.  If all of your cards have high rates, such as 18%, get a new cheaper card and move the balances of the high rate cards to the low rate cards.  Do not charge any more on your card unless it is absolutely necessary.
• Get rid of department store credit cards.  They charge the highest interest rate.  (Usually 21% or higher.)
• Try to pay more than the minimum payment.  Because of the way that interest charges keep piling up, you will be able to – believe it or not – reduce the balance quite substantially and slash your total debt by hundreds or thousand of dollars.

ARE YOU IN SERIOUS CREDIT TROUBLE ?

There are federal, state and local government agencies that will provide individuals with serious credit problems free (or for a very small fee) financial counseling.  If you feel that you need this type of service, the first step is to locate a National Foundation for consumer Credit NFCC) counseling office nearest you.  To find a NFCC member location nearest you call 1-800-388-2227 for a 24-hour automated office listing.