The average American has more than $9,000 in credit card debt. While having a credit card isn’t a bad thing, letting credit card debt pile up over time can place an enormous strain on your finances. Take a look at the articles, Q&A’s, blog posts and videos we have linked to this topic for ideas on how to handle credit card debt and your personal finances.
IRS Tax Refund: Pay Debt And Loans Down, Start IRA
Getting a tax refund from the IRS isn't much to brag about. If you're getting a tax refund from the IRS, you just gave the government an interest free loan by overpaying what you owed. There are some smart moves you can make with your tax refund from the IRS.
Paying Credit Card Bills Online
Paying credit card bills online can improve your credit history and your credit score. Just as you can prepay your mortgage, and save thousands of dollars in interest, you can also prepay your credit card debt, saving hundreds or thousands of dollars over the life of the loan. Set up online payments to streamline the payment process and avoid late payments. Setting up online payments eliminates the possibility that you'll pay late because your payment got lost in the mail. Late payments are not only expensive, but it can also damage your credit history and lower your credit score.
Debt Management Program Helps Pay Down Credit Card Debt
Many Americans owe a large amount of credit card debt. To pay off that credit card debt, some of them enroll in a debt management program through a credit counseling agency. According to CCCS of Greater Atlanta, women usually seek help repaying debt before men. When a debtor owes too much to pay back, the credit counselor may suggest filing bankruptcy. Learn about what services a credit counseling agency offers as part of a debt management program here.
Risks Of Using Non-Profit Credit Counseling Agencies
All credit counseling agencies are not looking out for you - even the ones that claim to be non-profit. Many consumers are surprised to learn that there are good credit counseling companies and bad ones. Just because the one you're using carries the "non-profit" label doesn't mean it isn't making money for its owners. "Non-profit" also doesn't mean the counselors are really working on your behalf. Once you find a good credit counseling agency, there are different ways it can help, some of which will affect your credit history.
Credit Card Traps To Avoid
In the continuing search for higher profits, credit card companies are raising fees, shortening grace periods and trying to find ways to get you to pay more in interest. Consumers need to know more and more to avoid credit card traps. Learn about the terms of your credit card and stay aware of any changes in order to avoid extra fees and traps.
Credit Card Debt, IRS News, Financial Roundup 2003
A reduction in the average amount of credit card debt, an update from the IRS, and new loan purchase limits are just a few news items in the 2003 financial news round-up. In 2003, the average credit card debt for the typical American family dropped form $3,200 to $2,300. Also in the 2003 Financial Roundup, the IRS is testing a system that will allow them provide resolutions to a variety of problems electronically. The IRS also plans to get more Americans to file their taxes electronically.
Credit Counseling To Understand Credit Report
Reading your credit report can be confusing. Ilyce suggests a good place to find a reputable non-profit credit counseling service and decipher their credit report is through the National Foundation for Credit Counseling (NFCC.org) or through Consumer Credit Counseling Service (CCCS.org). They provide budget counseling that should be free, or very nearly free to help you understand your credit report.
Credit History, Credit Score Determine Best Credit Card Deals
Your credit history and credit score determines the best credit card deals a consumer can get. Lenders treat your credit report and credit history as a running score of your financial life, and use that to decide whether you're worth the risk for a credit card, car loan or mortgage. Clean up your credit score and build a good credit history in order to get the best credit card deals for you.
Frequently Asked Credit Card Debt Questions
Frequently asked questions about credit cards, debt, credit history and credit score.
How Much Should You Save Each Month?
The first step to saving money is to spend less, and that includes paying off your debt as quickly as possible. Choose the loan with the highest interest rate first and pay that off, then move to the next highest interest rate, and so on.