Is it possible to live in this world – especially the western hemisphere – and remain debt free? We live in a society where instant gratification is a way of life. The advertising companies are experts in getting us excited about their products. The credit card companies are experts in enticing us to believe we can get anything we wish for – and pay for it later. This combination of wanting what we may not be able to afford – and making purchases that we can put off until later – is the beginning of serious credit card debt problems.

 

Companies offering <a href=" http://www.cleardebtsolution.com/">debt relief</a> programs are abundant. These companies that provide credit card debt help – rely on the consumers need for instant gratification and the credit card companies to push their offers like drug dealers do to addicts. There are two types of debt relief programs. The first type of program is called debt settlement or debt negotiation. In this program, experienced individuals will work with your credit card companies and negotiate on your behalf – reducing the total amount owed. They are often able to reduce your debt by up to 60%. The other type of program is debt consolidation. In this debt relief program all of your debt is rolled into one loan – which inevitably reduces the amount that needs to be paid monthly. Debt consolidation loans are often tied to your home – a home equity loan. This can be a good choice for some but, there is always the risk of potentially losing your home.  Both of these programs will damage your credit – but, if your debt is already out of control – your credit is probably already damaged.

 

The best way to deal with debt – is to not get into it in the first place. With the exception of major necessary purchases – a home, car and perhaps a student loan – there is no reason to rack up any debt. Here are some tips on how to remain debt free.

 

1. Open up a savings account with your bank. If you don't have a method to save money – chances are you won't. Most people have good intentions when it comes to saving money – but they usually fail. If your employer offers direct deposit of your paycheck – take advantage of that benefit. At this time – have 10% of your pay deposited into your savings account and the remainder deposited into your checking account. If you don't see the money – you won't spend the money. Having your money automatically deposited into your savings account – will force you to save money. Building a savings will help keep you debt free.
   
   
2. Pay for everything with cash. Using only cash to make purchases will limit how much you can buy. If you see brand new plasma TV that you think you must have – if you don't have the money in cash – don't buy it.
   
   
3. Cut up your credit cards and don't sign up for any new credit cards – no matter how attractive the offer sounds. Some people like to have one credit card for an emergency. But, for most purchases – a credit card is not a necessity.

 

Credit card companies bank on consumers not being able to stay debt free. The best way to deal with credit card debt is to stay out of it. It's not easy in a society that wants everything and wants it now – but it is possible.

Resource:

Ms. Bean has authored many articles on <a href="http://www.cleardebtsolution.com/debt-help-options.php">debt relief programs</a> and believes in proper due diligence before signing on with any debt or credit counseling program. Her goal is to spread the word regarding reputable programs offering debt help. <a href="http://www.cleardebtsolution.com/">Clear Debt Solution</a> provides debt settlement programs that reduce debt through negotiation.