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At the present moment, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Majority of young executives suddenly find that they are being offered credit cards by various companies. Those who are sensible enough will certainly find a credit card that suits their needs, sign up, keep track of their purchases, pay off their credit card bills in full each month, and ignore offers from other companies.

On the other hand there are others who may be dazzled by all the credit on offer and will end up with credit cards from several companies. And these are the people that may easily end up making lots of purchases on credit while making the minimum payments on their cards. Then, on one fine sunny day they realize just how much debt they are in when they need a debt consolidation loan to get out of a bad credit situation.

And thats where the role of Debt Consolidation and Debt Reduction Service comes in, they do not give you debt consolidation loans. They help you minimize your debts by 40 percent to 60 percent and your payments by 40 percent. In addition they see to it that you pay no interest, late fees, or penalties. They get you out of debt, and out of a bad credit situation, within three years. They ensure that you receive no more harassing phone calls from creditors by negotiating with them.

The best part about all this is that they can help you create a debt reduction plan. You start by listing all your debts, estimating your income, and creating a workable monthly budget. You then have to get the money to pay off all your debts. They also give credit counseling to you as well as advise to stop using your credit cardsthis automatically stops their debt situation from worsening. By playing a crucial role in helping you estimate your income and create a monthly budget, they ensure that you know how much you earn each month and how you spend what you earn.

You can consult them if you have debts that are over and above $5,000. Fact of the matter is you cannot hope to get out of a bad credit situation if you only pay the minimum amounts due every monthyou cannot hope to get out of debt for a lifetime. If you opt to go in for debt consolidationwhere the numerous payments you have to make each month are consolidated into one small sumyou can hope to get out of debt faster. If you are in a bad credit situation and need immediate help with debt consolidation, fill out the form on Web site. They will help you get out and stay out of debt for the rest of your life.

Is credit card debt can actually be termed as "nasty" Well think about it for a few minutes, it's not a good thing is it

Statistically speaking the average interest rate on credit card lending in the UK is currently 16.32% - that is around 11.5% more than current base rates, but that is only the average; in reality some cards can charge a heck of a lot more.

On the other side of the coin if we take the imaginary (but not unrealistic) scenario of a person with a credit card debt of 3000.00 at an interest rate of 16.32%, then in order to repay the debt in one year the monthly repayments would be 272.65 and over the year there would be approximately the same amount to be paid in interest.

Of course, it is worth noting that the credit card companies don't like you to pay off the bill so quickly because they don't make as much money that way. Instead they will like high balance accounts where small payments are being made each month.

Using the same example of a 3000.00 debt at 16.32% interest the minimum payment would be in the region of 45.00 per month depending on the lending company's terms and conditions. But by paying this minimum amount of 45.00 it would certainly require about 176 months or more than 14 and a half years to pay off the debt completely and at the end of it all the total amount paid would be in the region of 7920.00 far more than double the amount owed in the first place!

So it is simpler to see why the credit card companies prefer minimum payments and also how a consumer's credit card debt can soon spiral out of control. This is especially so when you are aware of the fact that all it takes is a simple phone call to increase borrowing when the credit limit has been reached. Offering minimum payments have been maintained, the credit card companies are usually all too happy to help a consumer into even more debt.

The number of credit card holders in the UK during the year 2005 who repaid their outstanding balance in full each month was only 59%. That clearly pinpoints that up to 41% of credit card users are paying the minimum repayment amount, and using the example above we can see that the earning potential for money lending is enormous.

Thats why it is no wonder that the credit card companies are ever eager to lend more money, and if you have credit card debt then you are not alone.

Once you acknowledge that you do indeed have a credit card debt problem, just what are the choices open to you Being aware of hassles you are facing is the beginning of understanding, and understanding is the first step in solving problems, so the most important thing is not to bury your head in the sand.

The standard thing to do is either to spend less or to earn more. Not simple as it sounds and it might take some creative thinking to achieve, but once it is the extra money can be used on a regular basis to repay as much as possible and get rid of nasty credit card debt once and for all.

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