How To Get Out of Credit Card Debt

How To Get Out of Credit Card Debt

By Mike Corbin - mcorbin@wibc.com | @WIBC_MikeCorbin

1/14/2013

---

Now that the holidays are over, Hoosiers are staring at major credit card debt.

Listen:

The latest figures show credit card debt in America is roughly $931 billion. That's an average $7,957 per household and actually down from $8,299 in 2008. Despite the figures, getting out of debt remains a big challenge for many.

Pete the Planner says to get out of debt, consumers should first figure out how much debt they have by collecting bills and taking stock. He says the next step involves listing debt from the smallest balance to the largest balance despite type of debt or interest rates involved. Next, pay minimum payments on every single debt except the lowest balance. As each bill is paid off in full, Pete says use the extra money to pay off remaining balances and so on.

Pete the Planner says most people pay off credit cards improperly. He adds you shouldn't worry too much about your credit score unless it's in the 500 range or lower. Pete says there are only two ways to reduce debt, by cutting expenses or making more money. He says cutting expenses is the real solution. Finally, Pete says it takes just as long to get out of debt as it does to accumulate it so be patient and keep at it.

Copyright by WIBC.com ? 2012. All rights reserved.?This material may not be published, broadcast, rewritten or redistributed.

Source: http://www.wibc.com/news/story.aspx?ID=1860627

weather radar the weather channel national grid LIPA MBTA Cnn Live Garcinia Cambogia