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Seriousness of United States Household Debt and Tips to Reduce

By Expert Author: Bill Cass | Article Abstract
Word Count: 556 words | Views: 17 view(s)
Household debt throughout the United States has become an ever increasing issue. Daily, millions of Americans find themselves in a financial situation that is not easily escapable—but are still searching for a solution.

Studies have shown a direct correlation between the state of the economy and the amount of debt consumers hold. The poorer shape the economy is in, the higher debt there is per household, and vice-versa.

The majority of personal debt is typically due to revolving debt. This is a form of debt which is carried over from month to month. Inevitably for most, this is almost always due to credit cards. Eighty percent of all households have at least one credit card, and sixty percent of cardholders carry credit card debt from month to month. For those families that carry a balance on their cards, their mean debt is more than $10,000. On average, American families have 2.7 bank credit cards, 3.8 retail credit cards, and 1.1 debit cards totaling 7.6 cards per card-holder. This is no surprise considering five billion credit card solicitations are mailed each year nationwide. Americans owe more in credit card debt than for their educations!

In 2007 the total amount of consumer debt was 2.6 trillion. Based on the latest Census statistics Americans owe nearly $18,500 for every man, woman, and child in the United States. Personal bankruptcies have doubled in the past decade and 43% of Americans spend more than they earn each year.

Household debt in the United States is a serious issue and many are looking for a solution. Resources are available that allow citizens to minimize household debts, but the one way to ensure you can start the elimination of debt, is to earn more than you spend. However, emergencies such as a lost job or mounting medical expenses may alter priorities, not allowing for debt elimination to occur.

On the other hand, continuing to add charges to credit cards only hinders your goal. If you are thousands of dollars in debt and continue to spend more, your financial situation can only worsen. There are, however, ways to achieve debt relief.

Setting up a budget aids in financial recovery, and should definitely be an early step in the process. Limiting your spending can be difficult due to credit cards that are easy to obtain, but it must be done. Budgeting will spotlight how much unnecessary spending one is engaging in and assist in limiting it. In addition, it is important to set aside money for necessary payments—such as mortgage or rent, utilities and food—so you should spend a fixed amount on discretionary items. Another tip is to use cash, because it allows you to spend only what is actually there. This way, when the money is gone, it is gone. This will virtually ensure you do not spend what you do not have.

If you are in over your head, and cannot seem to help yourself out, there are additional solutions. Debt settlement companies, for example, may allow you to catch up on your bills, without exploring the option of bankruptcy. Reputable companies have experts that will cater to your individual financial needs in order to determine which solution is best for you.
Bill Cass

About the Author/Author Bio

Less.com is an informational website that helps those struggling with unsecured debt. The site features debt hints and articles about debt settlement and negotiation, and provides a form to put you in contact with debt negotiation specialists that may be able to help reduce your debt by up to 50% or more.

Article Source: http://www.articlesphere.com/Article/Seriousness-of-United-States-Household-Debt-and-Tips-to-Reduce/185793

Article Tags: debt relief, debt help, reduce credit card debt, debt settlement

Article Submitted: 2009-05-12 | This Article has been viewed 17 times.
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"Reduce credit card debt and eliminate it before it assumes a horrifying shape" - This is really the gist of the story. So, how do you reduce credit card debt? Well, you reduce credit card debt by preventing it from increasing and by paying off what it is currently. Simple, isn't it?
First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to credit card debt problem?
Credit card debt relief is what every debt-struck credit card holder is looking for. Credit card debt relief is not just about reducing or eliminating credit card debt; credit card debt relief is also about getting de-stressed. Credit card debt relief is about working for oneself and not just for the credit card debt that you have on you. Yes, it's unfortunate but true. In fact, you can hear statements like "I have got a better job, now I can pack up my credit card debt even faster". So, in that sense, credit card debt relief is really about getting your life back on the normal track.
Credit card debt consolidation is regarded as the first step towards getting rid of credit card debt. Credit card debt consolidation loan is one of the ways of consolidating credit card debt. Besides, credit card debt consolidation loan, you can also go for balance transfer to another credit card. In fact, due to the publicity by credit card suppliers, balance transfers seem to be more talked about than credit card debt consolidation loan. Some people kind of forget about credit card debt consolidation loan being available as a method of credit card debt consolidation. However, credit card debt consolidation loan too is important to consider when going for credit card debt consolidation.
When you get up one morning and go through your mail with nothing but unpaid bills, some of them past due date and a summons from the credit card guys to hand in your card, you start getting the shakes. What now? Saying things like "I knew this was going to happen" or "I told you" are of no use. Action must be taken right away.
So many people are looking for a solution to their seemingly impossible unpaid debt. One solution people use is credit card balance transfers. If you have a big debt on one card, you can open up another and transfer your balance to that one.
 
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