The world, Americans included, is suffering from a serious disease — the disease of excessive debt. The problem in recent times has been the availability of very cheap credit and no real regulatory enforcement of who can or cannot take on debt. This has meant that many people have taken out credit cards and loans that they can barely afford. Sometimes this has led to people taking large loans or mortgages for real estate they cannot realistically afford on their incomes. And it resulted from people taking on several credit cards and blindly purchasing products and services and just “charging it”.

For some, debt has been managable. Sadly for an increasing number of people it has resulted in an inability to pay their debts. This site is here to help people understand what debt is, how it can be managed and what to do if you find yourself in problems regarding debt or credit status.

The average family carries a balance of between $7,000 and $10,000 on all their credit cards. Over $1,000 per family goes to pay interest on the credit card debt every year. And that’s just the average – some people owe much more!

Overall, Americans spend over $1 trillion every year on their credit cards, and owe more than $500 billion of it. If debt continues at the current rate then many families will be forced into bankruptcy. Over 90% of Americans’ disposable incomes are spent paying back debts.

When you add credit card debt to the regular bills we have to pay each month, most family budget barely fit people’s needs. As a result, some bills go unpaid and others are paid late.

Not paying and paying late can damage your credit. Sometimes you think there’s no way you’ll ever be able to get out of debt and get credit for something important like a home or a car.

The truth is that you can get out of debt and repair your credit to what it was before you had credit problems. It takes some time and a little work on your part, but it IS possible.

Loan approvals and many other financial decisions depend on your credit score. That number is what determines if you can get credit, what your interest rate will be, and how much money potential lenders will give you. A good median score is 750, but the higher your score is, the more financially sound you are.

While it’s always a good idea to try and stay away from credit, not everyone has a hundred thousand dollars lying around to buy a home or twenty thousand to buy a car. Heck, for some people, scraping together five thousand dollars for a good used car is difficult. That’s why we need credit. So we can buy that which we cannot afford.

Where the trouble comes in is when people begin to buy everyday items such as groceries and clothing on credit cards. Then those bills begin to get bigger and bigger until pretty soon, these cash-strapped people are paying the minimum amount due. If all you pay on your credit cars is the minimum due it will take forever to pay off. Plus, a lot of people just continue charging things even when they have a large balance on their account.

Your credit score defines who you are to businesses. You want your credit score to be as high as it can be. It doesn’t matter how bad your credit is now. There are ways that you can raise your credit score no matter how low it is today.

Why is it important to have a good credit?

With today’s society becoming more and more business oriented, establishing and maintaining good credit is vital if you plan to do any of the following:

1. Apply for employment
2. Rent an apartment
3. Open a bank account
4. Set up an account with utilities such as the telephone company

It used to be that establishing good credit was important only if you planned to buy a home or car, but not anymore. The simplest task, such as applying for employment, could call for an inspection of your credit. Some employers check your credit before making a hiring decision. They assume a person’s credit is a predictor of how good you will be as an employee.

Having bad credit could impede your survival. This is sad to say, but people have been turned down for top quality job positions because of their credit rating — even though that particular job could be exactly what a person needs to fix their credit. That’s a scary catch twenty-two don’t you think?

Ok, I’m caught in that scary catch twenty-two, what should I do?

Start by requesting a copy of your credit report in writing. You are entitled by Federal Law to receive a free annual credit report. There are three major credit-reporting agencies that you need to contact, you can run a search on the internet or find their information in a phone book. If you have already received a credit report for that year, you may also use any letter of credit denial as a trigger to get a new report. Send in a copy of that denial letter within 60 days of its receipt with your written request and you are entitled to a new report. Be sure to include a copy of your state issued ID, proof of your address and your last known addresses for the past 5 years. It is very important to include a copy of your social security card.

What does is mean to have good credit? Who cares who sees it?

Unbelievably, your credit report is public information to anybody when you ask for a line of credit. Any time you apply for employment, an apartment, or attempt to make a big purchase, you are asking for credit and permitting the potential creditor to view your credit report. Although your credit report does not reveal a personality diagnosis, it may just as well, considering it is through your credit report how others (potential creditors) will perceive what kind of person you are.

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