Debt Consolidation Credit Counseling In Phoenix

Getting your first credit card is exciting and easy. All you need to do is open up the pre-filled out application and sign your name onto it. Then you toss it in the mail and just like that you are in. Into one of the world's worst debt causers today, which seems to be expanding immensely.

Then you get the card, and it's easy to use. It's just as easy as your debit card, except it doesn't hit your bank account ... yet. It hits your credit card debt, which is a killer. It's very easy to keep spending and spending, and it's very easy to lose track of how much you have spent.

Before you know it, you have huge credit card debt, the card company doesn't care, and you're stuck making minimum payments at 20% for the next 30 years. You've gotten used to spending, so you quickly find you are living beyond your means, and collection calls begin. There HAS to be a way out!

They way out is to repair your past mistakes. Get rid of the credit card debt. Call the card company and ask them to work out a payment plan with you. Most of the time they are interested in getting their money back just like you are, so you can probably strike a deal for a reduced interest rate in exchange for a larger payment.

Once you make that phone call - trash the cards. Cut them up and bury them deep within your closet so you will never have to accidentally find one and go spend again. Ruining them completely can just hurt you ultimately as you may need the number to verify an account or etc. So saving them just for that purpose is necessary, unless you write the number down

However if you made the major mistake of using more than one card; you will likely be getting hounded from those companies to make payments as well. Simply telling them you are paying off a larger debt to a different company will get them off of your back, yet they will want to work something out.

Do not divulge the details of your arrangements elsewhere, because you might be on tape. Instead, let them know that you will be happy to discuss payments, but you respectfully need their understanding in negotiating. Do not agree to more payment than you can handle.

After all these arrangements, there might be another bill that you forgot about. If you cannot pay, don't lie. Apologize to them. Let them know that you have made arrangements with however many other places, and your income is fixed, but you will be happy to call them monthly to update them on your status. Stay in touch so they know your intentions, and you may find the collectors working on YOUR terms!