Debt Free News

Christmas card debt arriving in the mailbox

January 22, 2007

Even though many of our debt free readers may not celebrate Christmas per se, they still packed on some new credit card debt from other holiday spending according to statistics.

There are many of our debt free customers that are a bit apprehensive to check the mail box this month as all of their credit card debt will be filing into those tin boxes we have at the end of the driveway.

Many debt experts are reporting that the typical US consumer carries about fifteen thousand dollars in debt spread over an average of 8 credit cards and nearly 33% of that credit card debt is racked up in December by itself. Makes you wonder how to get on the good foot in the New Year with current debt doesn’t it.

According to a great new report in debt free news today, the first step of trouncing holiday credit card debt is to figure out exactly how much you owe. This may be frightening to those of you with that average of 8 darn credit cards –but you have to do it to get a game plan to become debt free in motion.

Once you know what you owe in credit card debt, make sure you do not acquire any more. It is not as easy as it sounds or you would not have the credit card debt you have today – right?

One report in Money magazine says that transferring balances to a card with a lower interest rate can give consumers the chance to catch up on payments, but only if you read the full deal and understand the commitment to this new debt (introductory rates many times disappear too soon). Also – do not respond to all of those new credit card offers that love to come in the mail during January.

Once you have decided to dedicate your full ability to get out of this credit card debt, you must be savvy. Start paying more than the minimum due on each card. You will have a much harder time getting debt free by paying the minimum due. Because credit card companies love it when you stay indebted to them, these minimum due amount are so low and tempting. Many times this is how you never get out of debt.

Pay off the highest rated card first – not necessarily the highest balance.

Most of all, once you are in the right frame of mind – stay there. According to today’s consumer debt report – this is where we all fall off the wagon. We get too comfortable and then we slip back into our old ways of spending once we catch up a bit. This is not the way to become debt free, this is the way to stay in credit card debt hell.

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