Ramsey County

Making $ense of Dollars and Cents

October 2, 2006

Dealing with Debt

          Americans love spending money – so much so that 43% of American families now spend more than they earn each year.  The majority of consumer borrowing, about 63%, is represented by non-revolving debt such as car loans. But revolving credit, which includes credit cards, is taking a larger and larger share of the total. 

          How do you know when your debt total is out of hand?  Inability to pay current bills or being consistently late in paying bills are two common red flags.

          What can you do to get out from under credit card debt?  First, stop using credit cards.  Stop carrying the cards with you on a daily basis and start using cash for purchases.  Next contact your creditors to delay or reduce payments.  Set up a realistic payment plan – determine how much you can afford to pay each month and then follow the plan.

          What about debt consolidation services?  Debt consolidation loans, at least reputable ones with affordable interest rates, are hard to find. Many companies that advertise debt consolidation are really offering very high-cost loans or even just trying to sell expensive information packages with common sense tips on reducing debt.

          Is credit counseling a good choice?  Credit counseling organizations work with people who are indebt or having money troubles to set up budges and bill-paying plans. They can be an excellent choice for reviewing your entire financial picture. The counsel can contact your lenders to work out a plan for you to repay your bills. There may be a small fee for this service.  Be aware of credit counseling services that offer quick solutions for a percentage fee based on your total debt. 

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524 4th Ave NE #5, 2nd Floor Ramsey County Courthouse
Devils Lake  ND  58301
701-662-7027
email - ramsey@ndsuext.nodak.edu