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If you're like many Americans, you spend a significant amount of time wondering how you'll ever be able to pay off your credit card debt. Making the minimum payment and hoping for the best won't cut it. Here's what you need to know about tried and true strategies to get rid of those high-interest balances and secure your financial future.
Change Your Perspective
The thought of having $15,000 in credit card debt is overwhelming. Reframe your situation by mentally grouping the debt into smaller chunks: three cards with a $5,000 balance each, for example. If you have multiple cards, list each balance amount, interest rate, and minimum payment. Then, take a look at your budget and determine the amount of ...
The average U.S. household carries close to $16,000 in credit card debt, which continues to add interest and grow over time. Adding to the burden, the national average credit card interest rate is 16.14%.
With this much debt, families may find buying a home, putting money away in a college fund, saving for emergencies, saving for retirement, or balancing everyday living expenses to be difficult.
For many, this debt can be overwhelming and difficult to overcome, but by approaching the situation with a change in spending habits, a commitment to saving, and a debt payoff strategy, you can manage your credit card debt.
Spending Habits
In many cases, poor spending habits lead to credit card debt. To pay off credit ...
Plenty of TV ads and internet pop-ups tout the benefits of debt relief programs that can wipe out your credit card debt for good. While credit card debt relief programs do exist, qualifying can be difficult. If you can move forward with this type of plan, your credit score can be irrevocably damaged, making it difficult to obtain a mortgage or loan in the future. Here's what you need to know about credit card debt relief programs and steps you should take if you're struggling to pay off your debt.
How Does Debt Forgiveness Work?
If you have a high credit card balance and you're behind on your payments, the credit card company will sell your debt to a collection ...
You've been feeling overwhelmed by your credit card bills recently. If you are having trouble paying even the minimum balance, you probably have too much debt. How much credit card debt is excessive? Although the answer depends on your financial situation, certain factors can indicate whether you're in danger of having a debt you're unable to repay. September 2017 data from the Federal Reserve indicates that more than 77% of American families are in debt. While credit can be a lifesaver in emergencies and a smart financial tool when used effectively, it's easy to get in over your head.
Signs You Have Excessive Credit Card Debt
If you have trouble thinking about your debt because you feel anxious or nervous, ...
When you think about your credit cards, you probably don't think about taxes. However, there can be some tax implications when it comes to your credit cards. For some of us, the way that we use our credit cards could add to the amount that we're able to deduct from your tax return. For others, credit cards may increase your yearly income and cause a tax debt. You may not realize this fact until you receive a tax form for your credit card in the mail.
Interest and Deductions
There are some interest deductions that you're able to take off of your taxes. Interest on your mortgage, student loans, and similar debts may be written off depending on if it's ...
If a credit card company charges off your debt, it gives up on receiving repayment and chalks up the amount as a loss. However, this doesn't mean you're no longer responsible for the debt in question. Not only can collection agencies sue you for repayment, but you will also see a decreased credit score and may even face tax consequences. Here's what you need to know about how credit bureaus and the IRS treat a credit card write-off.
When Is Credit Card Debt Written Off?
Typically, a so-called charge-off occurs after you've failed to make a credit card payment for at least 180 days.
When Does a Write-Off Have Tax Consequences?
Sometimes, the credit card company will cancel the charged-off ...
When you have parents in debt, offering help or advice can be a sensitive subject. It's natural to want to support the parents who helped you get where you are today. However, offering financial assistance goes way beyond simply paying off your parents' back tax debt, credit card debt, or other major obligations. Discover what to do if your parents are in financial trouble. Learn how to help your parents get out of debt without using your own money.
Image via Flickr by frankieleon
Give Time Instead of Money
Upon realizing that your parents are facing insurmountable debt, your first instinct may be to give them as much money as you can afford to offer. After all, loaning to your ...
Living with two or more student loans can be really challenging, especially for those trying to establish a career or start a family. Fortunately, there is a potential solution to this problem in the form of student loan consolidation.
With student loan consolidation, one new combined loan takes the place of your existing loans. The big advantage to this is that it can lower your payments and lower your interest rates. It can also make your life much simpler because you will only have one payment and one lender to deal with.
There are two popular kinds of student loan consolidation programs available to you:
Private student loan consolidation.
Direct student loan consolidation.
Private and Direct Student Loan Consolidation Explained
...
Understanding student loan forbearance and deferment is critical for every student loan holder. The U.S. Department of Education does not want anybody to default on his or her student loan. To help you avoid default, the department has two programs designed to keep you out of trouble - deferment and forbearance.
Many people get these programs confused because they essentially do the same thing - pause your loan payments. But there are some critical differences that you must understand before you apply for one of these programs.
What is Student Loan Forbearance?
Forbearance is a temporary pause in Federal Family Education Loan (FFEL) and direct loan payments. This includes persons who cannot work because of health problems or disability, and ...
Private student loan debt can be a huge problem. These debts cannot be discharged through bankruptcy, and to make matters worse, private student loans are not eligible for income driven repayment or forgiveness options like federal student loans are.
Unfortunately, many people do not realize how hard it is to pay off a private student loan because of the false and misleading promises made by some for-profit colleges. Some of these colleges push private student loans on their students because they receive more money from them than federal student loans.
What To Do About Private Student Loan Debt?
Students with private student loans have several options. Not all of these options are right for every student, but most people can ...
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