Debt is rising for the U.S. government at an alarming rate, but for the citizens of our country average debt is slowly being eliminated as reported in CNN. Back in 2008 the average per person debt was about 8 thousand, fast forward to 2011 and the average debt is unknown as some reports claim that the debt is between 6-9 thousand and others claim between 10-15 thousand dollars. In my opinon I believe that the first figure is broken down by the total house holds who have debt and those without debt in America. The second larger figure is broken down by the households that only hold debt. So why report false hope in the eyes of the average person reading the article, because the credit card industry’s main purpose is for us to keep spending and continue fueling their revenue stream.
If the average person feels that the economy is doing better overall then they will go to the mall and shop thus fueling all aspects of our economy. But why set up a system to indebt the average person for years at the sake of our government’s GDP and corporate greed. I will provide a few tips to knock down debt and release all of us from the curse of the plastic gods.
1. Always pay more than the minimum even if its 20 dollars more per month.
2. Begin to live a cash and debit card system, leave the credit cards at home. (emergenices only)
3. Call the companies you owe and negotiate a reduced rate on your cards.
4. If you have a car loan refinance it. (Lower rate and decreased time frame)
5. Use any additional income and tax return to pay off loans. (70% of tax return for debt reduction)
6. Use Balance Transfers only if they come with No transfer FEE option. (Chase has this often)
7. Read Dave Ramsey’s Books for the proper way to roll away debt. (Debt Snowball)
8. Debt: 1.Schools loan(Pay minimum), 2. Car Loan,(Pay minimum) 3. CC Debt (Pay maximum)
Now you can see what you need to do to get rid of debt in your household. After getting rid of the CC debt, begin paying the maximum to car loans until that is paid off. The secret is to not add on new debt while paying down debt or the downward cycle will never end for you. I have put togeather a poem for your reading pleasure: