Credit card debt is a frightening and very real problem for a high percentage of Americans. Over two million Americans seek the advice of a credit counselor each year, mostly to avoid bankruptcy. According to www.money-zine.com, there were 164 million credit card holders in the United States in 2005, and that number is projected to grow to 176 million Americans by 2010. These figures hold ample room for debt and creditor,s traps.

If you find yourself in a difficult credit situation, you may be relieved to find there are ways out. Certain steps can be taken to give yourself a hand out of the giant hole of debt you may have fallen into. Remember, no one else can do this for you, so the initiative must be your own. Also, while debtor’s prison has not existed since 1800, the creditors are still allowed to sue you for their money. The steps to begin working your way out of debt are complicated but they are worth a good night’s sleep.

Stop using your cards. As soon as you realize there is a problem, put those cards away. Put them in a safe deposit box, at a trusted friend’s house, high in that closet you never look into, or anywhere they cannot be used. If there is a credit issue in your household, you cannot promise yourself you will not use them once you get some credit back. Find a way to use cash for everything until you straighten out the card problems. For tips on saving money and cutting monthly spending, visit
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Call your creditors. Remember, the credit cards are unsecured debts. The creditors have nothing to take away from you if the balances are not paid. For example, if you buy a car on a loan, the car is collateral, meaning the car can be taken back if the loan is not paid. With a credit card, the creditors pay the business where the card is used, then individuals pay the creditors. There is no concrete possession for the creditors to retrieve. Therefore, creditors realize they should work with their debtors.

Creditors want their money, and many are willing to work out plans to help you pay your debt. Remember, however, do not let the situation spiral so far out of control that your interest rates begin to go up. The longer you put this off, the harder negotiations become. This is because the creditors don’t believe your word. When you enter into a credit card contract, you agree to pay the money back on a certain day of the month. If you loaned your friend ten dollars, and your friend promised to return the money every Friday without coming through, you’d stop believing them and would reluctantly loan money in the future. Creditors feel the same way on a grander scale.

Consider debt consolidation. If you feel your bills are getting too high, yet your credit score is still in good standing, debt consolidation may be a good direction for you. Many credit unions have low rates, and sometimes give discounts to new members.

Consider not-for-profit credit agencies. It may take a few times to find one that fits your situation, but it’s worth the effort to shop around. These companies are usually in the local phone book and can ease your debt over the course of a few years. Terms and conditions vary, and there may be fees attached, so do your homework before attaching to the first agency you dial.

The last ditch effort: bankruptcy. Sadly, many Americans take this final step. Read as much as you can on the individual bankruptcy laws in your state. Be prepared before looking for a lawyer. This is the priciest and longest option, but it is an option for individuals overwhelmed with their debt. If the thought of a lawyer with fees frightens you, attempt to find a lawyer who will work pro bono. These lawyers are usually new graduates interested in finding cases to build their resumes. Many larger cities have a growing population of younger lawyers with clean resumes who may be able to assist with bankruptcy cases.

Whatever the situation may be, credit card debt is frightening. However, do not be afraid to call creditors continuously to demand help with your situation, and do not be too ashamed to ask for help through consolidation, agencies, or bankruptcy. Many Americans face the same situation every day, and it is not because they are stupid or fools. It is because they are individuals who have fallen under changing circumstances and they find themselves in an unusual financial situation. There is no shame in life changes, and the debt that sometimes accompanies