Often times during our weekly staff meetings someone will inevitably bring up something they heard from one of our competitors over the radio or television advertisements that says something like this; “We will teach you the secrets the credit card companies do not want you to know about.” Really? After 14 years of helping families and small business owners negotiate and settle their debt though our debt settlement programs, we have yet to find out what “secrets” these companies are talking about. Maybe that is because we are full-disclosure debt reduction company that states there are no secrets to getting out from under the debt trap. If you do not want to be in debt, than simply spend less than you earn each month. However, what if through no fault of your own, you are in debt. That is where our debt relief program can help you!
Let us say you lost your job, or your small business that you work so hard on all your life, just cannot keep up with modern technology, or a family member becomes ill and you will spend any amount of money on doctors and hospitals to keep them alive. These are real life situations. It is your fault that the credit cards that you have paid on for 10, maybe 20 years without missing a payment suddenly decides to raise your interest rate to 20%, 30% or more, because they made mistakes loaning money to homeowners they shouldn’t have and are now trying to make that up. The answer to that is NO!
So then, let us talk a little bit about what it is going to take for you to dig out from under the debt trap. Sadly, many people in today’s economy are losing the battle of high credit card debt and high credit-card balances. Consider that over 62% of all credit-card holders today carry a balance on their credit cards each month, according to an industry tracker. Among these are families that have at least five to seven credit cards that do not pay off their balance each month the approximate balance on each card is over $4,735. Seven years ago that same number was only $3,472. So in seven years, very similar to our national debt, our personal debt has increased as well.
Part of the problem is that these credit-card companies have made it easier and easier than ever to carry a balance. In fact, the higher the balance you owe the more they prey on you. They offer you balance transfers and other gimmicks hoping that you will fail to keep your end of the agreement and there goes your interest rate. However many fiscally responsible people can also find themselves woefully in debt, especially after some sort of personal crisis as I mentioned earlier, such as the loss of a job, a divorce, a serious illness or helping an elderly parent.
Therefore what are the warning signs that your credit-card debt has changed from a nuisance to a crisis? For starters, if you think that you might be having a problem, then you probably do. Generally speaking, your debt-to-income ratio (not including mortgage payments) should not exceed 25% of your earnings, which means that you should not be devoting more than 25% of your net monthly income to paying off credit cards and other non-mortgage debt. Other signs of trouble include:
• Only being able to make the minimum payments on your debt.
• Using credit cards for everyday purchases like groceries or gasoline.
• Using credit cards to pay for things you know you can’t afford.
• Worrying that people close to you will find out just how deep in debt you really are.
• Frequently charging items with the intention of paying them off at the end of the month, but then finding that you’re financially unable to do so.
At Nationwide Debt Reduction we have a term for this. We call it “the debt trap.” The good news is, there is a solution to digging out of debt and truly becoming debt free for good. That solution is a debt settlement program.
If your creditors are starting to call you, or you are taking money for other resources to pay your credit card bills, it is not too late to get help. Our company can be your advocate. We can help stop these calls while at the same time legally and morally contact each of your creditors and work out some time of debt relief solution, whereby you only have to pay back a fraction of what you currently owe. The IRS does it all the time with people who owe back taxes. Nationwide Debt Reduction does it for people who have fallen into the “debt trap.”
However, do not waste time worrying. Please call one of our professional consultants today toll free at 800-890-6658 or simply go to our “Contact Us” page. The call is free and the advice is free. Find out how much money you could save with a debt reduction program such as the one we offer you and start becoming debt free today. We’re here to help you.