Debt Control Basics

debt controll basics

If you find that your debt is out of control, it's always good to get back to the basics.   



We have all been at the check out stand and the sales person asks if we would like to get an instant 20% off the purchase.  All we have to do is just take a few minutes to fill out an application for their store card.

Sounds like a good deal, right?  WRONG

Most of the time, store cards are not a good idea. Let's say that your bill is $100 and with the 20% off it is only $80.  Nice savings.  I bet you are starting to feel like an Extreme Couponer! 

However, if you don't pay the remaining $80 off within 30 days and just pay the minumum payments, you could end up paying 2-3 times as much to finally pay off that card.  Not only that, but store cards often come with high interest rates.  Frugal shopper beware!


I know this sounds simple, but most people get in trouble with their credit as result of spending way beyond their means!

Here's what happens:

You already have a couple of credit cards charged up to about 70%-80% of the credit limit, and you are making the minimum payments each month without too much effort.

You "really need or want" that item and tell yourself something like "It would only increase my monthly payment by $20 and I can handle that."

                               WARNING!     WARNING!    WARNING!

  • Your credit limits will start to be maxed out and that will result in a higher CREDIT RATIO.  Your credit score will decline.
  • By the time you repay these cards making minimum payments, you could end up repaying 2-3 times as much as the current balances!
  • If you should have a severe financial setback, such as Unemployment, Divorce or Major Illness, you could be in real trouble.


If you find yourself starting to get into financial trouble because of TOO MUCH DEBT, consider a DEBT MANAGEMENT PROGRAM or a DEBT SETTLEMENT PROGRAM.

DEBT MANAGEMENT is a program designed to:

  • Combine all of your payments into ONE PAYMENT.
  • Reduce the interest rates and fees.
  • Help you pay off all of your cards in about 48 months

But, if you do not quality for a DMP, you should consider a DEBT SETTLEMENT PLAN:

  • One monthly payment much less than all of your current minimum payments
  • May reduce your balances by 50% or more
  • Avoid bankruptcy


Tags: credit card debt elimination, debt settlement, debt elimination, debt relief in Portland Oregon, debt management

5 Tips on How to Eliminate Credit Card Debt

how to eliminate credit card debtHere are 5 tips on how to eliminate credit card debt that you can use:


Enough is enough!  You cannot continue to charge up your credit cards and ever hope to pay them off.

Suggestion... Keep the lowest interest rate card with the smallest balance for EMERGENCIES ONLY and DESTROY THE OTHER CARDS. It is only after you realize how deep in debt you are that you will stop using credit.


You might consider consolidating your credit cards to one card that will offer a low or zero rate initially and then a reasonable rate (10% or less) after.

But be careful!  Some of the advertisements have a lot of small print that can end up costing you more money.

  • Hidden rates
  • Hidden fees

You can also call your creditors and ask for a lower rate. Tell them you are shopping around for better rates and will be transferring your balance if they will not help you.


 #3 Use the SNOWBALL METHOD to pay off your credit cards.

The method is simple, yet very effective if:

  • You are paying at least the minimum on all of your cards now
  • You have additional money to increase the payment on one of the cards
The Debt Snowball Methodwill help you pay off your cards in a fraction of the time and save thousands of dollars in interest and fees!

If you cannot afford to do the SNOWBALL METHOD, then consider:


A Debt Management Program will allow you to have:

  • One payment per month
  • It may or may not be lower than the total of all of your minimum payments due now
  • Will reduce interest rates and fees
  • Help you become debt free in 4-5 years!

If you do not qualify for a Debt Management Program or cannot afford the payment, then you should consider tip #5.


A Debt Settlement Program is suitable for those under severe financial hardship such as:

  • Unemployed
  • Divorce
  • Medical hardship
  • Just not earning enough income to continue paying on the credit cards

A  Debt Settlement Program will negotiate settlements on your unsecured debts including:

  • credit cards
  • store cards
  • personal (unsecured loans)
  • repossessions
  • medical bills

The final settlement amount can be 50% or less than the balance AND your payment will be a lot less than the required minimum payments or a DMP payment.

Before you consider bankruptcy, please contact us for a FREE FINANCIAL EVALUATION.

how to eliminate credit card debt



Tags: credit card debt elimination, debt settlement vs bankruptcy, debt management

Credit Card Debt Elimination: 3 Great Options

credit card debt eliminationWhen you are facing a mountain of credit card debt, many people get confused and overwhelmed with all of the information that is out there to "help".  Over the last year or so, we added many posts to this blog about various options for Credit Card Debt Elimination. 

I thought it might be helpful to pull together what I find to be the most helpful posts on your best 3 Credit Card Debt Elimination Options:

#1 If you can keep up with your current payments, you should try to eliminate your debt with a Debt Snowball.  Click on the link below to read a post about what a Debt Snowball is and how to use it.

What is a Debt Snowball?

#2 If you have fallen behind on your debts, but would be able to keep up with your payments if you could just get caught up, Debt Consolidation may be your best Deb Elimination option!  A Debt Consolidation program can help reduce your monthly payments, lower the interest rate your credit card companies are charging, and put you on a "level payment plan" to get you out of debt FAST!  Click on the link below to read a post all about what a Debt Consolidation program can do for you.

Debt Consolidation Program vs Debt Consolidation Loan

#3 If you have had a drastic change to your monthly finances (loss of job, divorce, illness...) or if you are behind on your credit card or other unsecured debt payments by more than a couple of months, Debt Settlement is probably going to be your best option. Click on the link below to learn about Debt settlement and how it can help you reduce your monthly payment, get rid of interest and fees altogether, and eliminate your debt for HALF of what you owe!

Debt Relief Options: Why Debt Settlement May Be Your Best Choice

If you still have questions about the options available to you, or if you want to find out how to get started with these programs, our Debt Solution Specialists can help.  Feel free to ask a question in the comment thread below, call our toll-free number, or click on the button at the bottom of the page for a FREE DEBT ANALYSIS!  We are here to help find the right solution for your situation.


credit card debt elimination


Tags: debt consolidation program vs debt consolidation l, debt snowball, debt relief options, credit card debt elimination