A budget is usually the best first step.
Create a budget for yourself by adding up all your income, payments and expenses which will help you check where your money is being spent plus your budget will highlight all the small, unnecessary expenses that can be eliminated.
Cut the credit card purchases by introducing a habit of paying in cash as this will restrict your expenditure to the amount of cash you are carrying.
Be careful when enlisting professional help.
Even though the odds are in your favor, do not jump into a settlement negotiation without having the money ready to pay.
The creditor may agree to settle the debt but may require that you submit your payment rather quickly.
When working out an arrangement to pay less than what is actually owed to a creditor, it is absolutely important that the settlement agreement be in writing and that you receive such a letter BEFORE you submit payment.
There is a simple explanation for all the debt in America.
The answer lies in their credit cards, as well as the unmonitored spending on these plastic items.
Experian, a known credit score provider, even presented data that explains 10% of American credit card holders have about 10 credit cards! On the average, an American consumer may have 4 credit cards in his wallet.
This may be because card companies always offer tempting perks and rewards for new applications.
Every year, billions of new credit card offers are sent to American consumers, according to Synovate, a market research firm.