The Need to Be Credit Card Debt Free

It is no secret in our society today that creditors and credit cards are apart of the average American houshold. You may have your personal feelings towards owning and using a credit card on a consistant basis. The question I have is: Would we, as a society, be better off without credit cards? Here is an attempt to possibly answering that question. The Federal Reserve Board claims in 2010 that consumer debt in the United States totals upwards to around $874 billion. Break that down to houshold and even per adult and you get, according to www.indexcreditcards.com, close to $7900 worth of debt per houshold and right at $4000 of accumulated debt per adult. Now, keep in mind that this is simply averaging. Let's have fun with this for a second and play with figures. A well-to-due married couple have their finances "in control". They do not believe in owning credit cards and decide to pay for eveything with cash. Crongratulations for you two, but for the average debt sake, that $4k per person will have to bounce around until we find a reluctingly embracing home for it. Ah yes, there is one now. Let's jump to the all too common single mother of two sceneraio. In her case, she works 40+ hours a week and tries to keep her two children fed and housed. After taxes, rent and monthly bills dismantle her paycheck, what is left to purchase the household necessities such as food and toiletries? Well, we call this the "live off credit" method. Adding the 8k that was bounced over from the no credit couple and combining that with the average debt already discussed and this single mother ha instantly accrued $12,000 in personal debt. Now, $12,000 with a 12% interest rate comes out to $240 in monthly payments. The question now becomes: "How can we pay off this credit card balance?" Like most people in this situation, this question looms like a weight of the world on one's shoulders. Here are some potential ways to reliver yourself of credit card debt:

1. Is a raise a possibility?- First thing is first, your income. Is there any possible means to increase it? Unless you speak to your employer and ask for a raise, one may not come your way. Let it be known the job you are doing and what successes you have created. A valuable asset to a company should be rewarded in such a way. Do not be timid in your approach to obtaining what should be rightfully yours... A bigger paycheck.

2. Pay more than the minimum- If there is disposable income, now is the best time to use it. Pay more than the minimum payment. You will then have less principal, in turn, having less interest accumulation. Not to mention paying off your debt a lot sooner.

3. Get rid of your credit card- Even though you feel your credit card is a "security blanket", in all honesty you simply do not need it. Generations ahve been living without credit cards potentially on a lot less income. Get those things out of your life and keep them out!. You may feel the stress shed from your body the second you cut them up with a pair of your orange handle scissors.

4. Ask for a rate reduction- If you are in good standing with your credit card company, they may be willing to reduce your interest rate, but only if you ask. Lowering your interest rate will lower your monthly payments.

5. Stop purchasing on credit cards!- If you continue to use credit cards, you'll continue to stay in debt.

There must be a deliberate attempt to stay out of debt. Using credit cards are one of the quickest and easiest ways to pay for bills or purchase products. Just like dieting and relationships, you must be intentional. Get it in your mind that you will get out of debt and know the process in order to. Be intentional on a daily basis. You can enjoy your financial freedom and live the life you were intended to live.