Consumer News And Recalls

E-mail

Close Window E-mail This Page

4 Easy Steps To Help Get You Out Of Debt

Required fields are marked with an asterisk(*)

Recipient E-mail:*
- Your Name:*
- Your E-mail:*
Add a Message:
Send me a copy of this e-mail.

Type the characters in this picture:*

Click here to refresh with new letters

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

Print Share + Comments

Mar 5, 2009 12:34 pm US/Eastern

4 Easy Steps To Help Get You Out Of Debt

Reporting
Paula Ebben

BOSTON (WBZ) ―

Click to enlarge 1 of 1: Stop using credit cards and pay cash whenever you can.
WBZ

Close

numSlides of totalImages

Here's a number that might catch your attention: the average American household has about $9,000 of credit card debt. With a faltering economy, and higher interest rates and fees on many of those cards, an increasing number of consumers are trying to get their finances in better shape.

That's certainly the case with Francine Adams. She was laid off last year when her company downsized. These circumstances have made her finances a major concern. "I wanted to find out how I could best manage my bills and credit cards until I returned to work."

At first, she approached her mortgage company and credit card holders, but didn't have any luck. Her next step was to consult with a credit counselor. In fact, some credit counselors have seen an 80 percent jump in the number of people seeking help managing their money.

Here are some of the steps that Howard Dvorkin of Consolidated Credit Counseling generally outlines for his clients.

Step one: Stop using credit cards and pay cash whenever you can. He said "You're not going to get ahead paying on credit and trying to make minimum payments."

Step two: Add up all of your debt. "So many people are afraid to see what they owe, but the fact of the matter is you can't put a game plan together if you don't know what you are up against."

Step three: Pay smart. "Find the debt with the highest interest rate and start putting as much money as you can."

Step four: Create a budget you can live with. As you do that, look for savings in your day to day life. Even little things like making better choices at the grocery store or turning your thermostat down a few degrees can add up.

Dvorkin also cautions his clients to be patient. "It's going to take along time to dig out."

Francine has had some success getting her finances in order, and advises getting help sooner rather than later. 'Don't wait until you're under water before you start looking for a lifeguard."

The credit card industry is launching a new campaign called "Help with my credit." The site includes a toll free number, 1-866-941-1030, as well as other financial information.

Other places to get help include DebtAdvice.org, AICCA.org,
MoneyManagement.org, NovaDebt.org, TakeChargeAmerica.org.