Christian Debt Recovery

Average Credit Card Debt After College

September 21st, 2008 |

Author: Gavin

Six Things You Should Know About Credit Card Debt

The slowdown in today’s economy has prompted all of us to take a closer look at our finances and to think about what would happen if we lost our job. For so many people today, the scariest part of that idea is what we would do about our credit card debt. It’s so pervasive that there are few people who don’t have outstanding balances on one or more credit cards. Here’s what you should know.

1. We are talking about unsecured debt that accumulates interest if not paid off each month. If you miss a month you can count on being charged a late fee and being reported to the credit reporting agencies. Missing a payment can stay on your record for seven years!

2. To make matters worse, if you miss a payment to one card all of your other cards may raise their interest rate in what they call a “universal default”. So even if you’ve paid on a card religiously, you may get hit with an increase for missing a payment on an unrelated card.

3. Credit card debt starts early. An average college graduate leaves school with over $2,000 in debt. Paying off is a tough lesson to learn just as you’re starting your adult life.

4. Credit cards aren’t bad. It’s just our unrestrained use of them that gets us into trouble. We should only charge what we know can be paid off at the end of the month.

5. Don’t wait until you’re really over your head to take action to reduce this debt. Use an online interest calculator to figure your payoff date.

6. Many people have turned to credit cards to extend their budget in this recession. They use them to fill the gap and are increasingly using them to do things like buy groceries and pay the mortgage. The problem is that it may take longer than we think for the economy to turn around.

The bottom line is that we need to look at our debt and make a realistic plan to reduce it or pay it off entirely. A default is not something you want on your credit report to take a look at all the options to eliminate your credit card debt. There are several excellent programs out there that will take the worry and stress out of being over your head in this kind of unsecured debt. Just make that call and find out what can be don’t to keep your homelife and your credit report intact.

About the Author

Debt settlement is an awesome recourse! Before filing for bankruptcy, go to Arc Financial, to get info on Debt Settlement Strategy and Credit Card Debt Elimination today!