In simple terms, credit card debt can be described as that credit card outstanding that has passed its due payment date . Most of us are having credit cards. After making a purchase or balance transfer or withdrawing cash, we have to pay amount required by the credit card issuer within a given time period . If that amount is not paid, it will constitute credit card debt . Since no collateral or security is kept with credit card companies, credit card debt is a typical unsecured debt that attracts higher interest rates .

Overall credit card debt includes amount that has been used by a person, interest applied in the credit card account and penalties, if any. Late payment fee takes the credit card outstanding to higher levels considerably. In United States, late payment fee applied in the credit card account varies from $10 to $40. Since all credit card companies report to credit rating agencies like Equifax, credit rating of a person also gets lowered due to credit card debt .

alarming levels and consequences

Credit card debt has reached alarming levels . For example, in United States, more than 70% of households are suffering from credit card debt . If seen in amount, total credit card debt in 2005 was around $735 billion . Similarly, United Kingdom is another nation facing huge credit card debt levels. It has credit card debt more than 55.1 billion pound sterling. Main reason for such huge credit card debt is availability of multiple credit cards with people and their unscrupulous use . Due to presence of large number of credit card companies and each one of them trying to attract more numbers of customers as they can, it has become easy to get credit card and use it up to limit provided. With multiple credit cards, it becomes difficult for a person to repay all the outstanding. This results in credit card debt. Had the person used the credit cards prudently, he would not have suffered like this. Non-stop purchase with credit cards is still going on and in years to come, credit card debt would certainly reach alarming levels. As per the survey, it was also found that when a student leaves his graduate or post graduate courses in United States, he has an average of $2000 credit card debt outstanding . Time has come when all countries, especially the industrialized countries where credit card debt is rampant, should take effective steps to reduce the overall credit card debt.

It has also been seen that when a person is not able to repay his credit card debt and interest keeps on accumulating in his credit card account, he goes for bankruptcy filing. This stops all the immediate actions of credit card companies for recovering their amounts. There are many intricacies involved in such cases and even it is not necessary that bankruptcy judge would give orders in favor of a person. Of late, it has been observed that major credit card companies across the world are not trying to get bankruptcy and other similar laws more strict so that a person suffering from credit card debt in not able to get easy respite.

What has to be done

Certainly, something has to be done with respect to ever increasing credit card debt. People suffering badly have only one wish to become debt free as soon possible and lead a happy and harassing-calls free life . There are some professional companies that can help a person in becoming debt free . These companies offer various types of solutions like credit card consolidation, credit card debt settlement, credit card debt negotiation etc . It has been noticed in many cases that above processes are able to reduce the credit card debt by more than 50%. Let us discuss some of these professional sources to know more .

Some sources

Superior Debt Relief is one of major debt management agencies in United States that helps a person in reducing credit card debt and becoming debt free over a period of time . In past few years, it has helped many people through processes like debt settlement, debt reduction etc. This debt settlement company has been providing services for more than 10 years and its efforts have been quite instrumental in stopping unfair practices for recovering of credit card debt. It is approved by Better Business Bureau and its debt consultants and debt negotiators are accredited by IAPDA or International Association of Professional Debt Arbitrators. It is located at 2625 Redwing Dr. Suite 140, Fort Collins, CO 80526. Its contact number is 888-366-3414.

Similarly, Crusader Consumer Services is another center in United States that can help a person in reducing credit card debt . It is located at 4340 East Kentucky Ave, Workshops 123, Glendale CO. Its contact number is 303-757-6300. It is one of leading credit repair services in United States and comprehensive strategies are used for reducing credit card debt as well as for improving the credit report of a person.

Debt Cause is one of leading online credit card debt consolidation centers in United States. A person can apply and get free online quotes . Experts at Debt Cause try to eliminate it completely or reduce the interest and late fee applied in the credit card account . Credit card debts are consolidated into single monthly installment and over a period of time, a person becomes debt free .

There are also many sources in United States that provide counseling as well as other necessary services to reduce credit card debts. For example, Care One Credit Counseling is one such center . It is located at 8930 Stanford Boulevard, Columbia MD. Its contact numbers are 410-910-1735 and 1-800-284-1596. Services are provided across the nation. A person can get his all types of debts, including credit card debt, up to 57% and can also get free debt quotes online . Whole process is taken care of by a team of specializing debt consolidators and debt counselors.

Though ample support is available for reducing credit card debt, it is advised here that a person should use credit card up to that limit which can be afforded by him. Any amount of credit card debt must be avoided altogether .