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American Consumer Credit Counseling

Recent studies show that the average American Consumer carries a credit card debt load of approximately $6000. This is on top of the remainder of both House and car payments, student loan debt and other various amounts of owed money. If you take the monthly payments of this combined debt, and compare it with the net income of the average family, it is no wonder that around 90% of the disposable of American consumers' income goes towards credit card debt payments.

This turns into a vicious cycle. If the majority of your spending money goes toward money that has already been spent, and toward the interest accumulating on that debt, there is next to nothing to spend on future purchases. In many cases, people wind up using the credit they just paid off to make those purchases. Using this formula, many American consumers find themselves paying money to spend money on the continuous interest building.

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We at Aegis Debt Consolidation want to help consumers get out of the trap that is credit card debt. We offer American consumer credit counseling tips to avoid falling into this trap. The following is a list of guidelines to help you avoid unmanageable levels of debt.

Budget your spending
A well planned budget can go a long way in securing your financial future. By allocating a certain amount of your monthly income towards necessities such as utility bills, food, clothing, savings for unexpected evens, and retirement funds the remainder is the only amount that should be considered disposable income. This is the money to spend on entertainment and other purchases. Use a spreadsheet on your computer and print it off. Keep in a place (on your fridge) where you can see it often. Once you train yourself to spend according to a budget, you should be able to stay out of credit card debt.

Keep credit card use to a minimum
Many people have a habit of making casual purchases on their credit cards. Provided you pay off these purchases before the end of the month, this is not a problem. However, many people forget to pay these purchases off and the next thing they know, the monthly interest has raised the actual cost of those purchases. If you have made a number of these purchases on your card, you have just taken the first step toward credit card debt. Suddenly, you can't afford to pay off the entire amount, and this carries over to the next month. Getting into debt is this easy, and it is the reason that so many American Consumers seek credit counseling.

Arrange payments according to interest rate
This is key for people with multiple credit cards. Find out which interest rates are higher, and divert more money to paying those ones off first. Otherwise you'll spend more money paying those cards off.

Always keep and build a 'rainy day fund'

The unexpected can always happen. Put money aside on your monthly budget for the possibility of family illness or job lay-off. Without a contingency fund you may find that soon after, you'll need the advice of a credit counselor.

If you are in trouble, seek help
If you are having trouble making credit card payments, or worse, are living check to check and still having trouble, seek the help of a credit counselor. You are not alone, it is estimated that one third of American consumers have worked with credit counselors at some point in their lives. Be sure to avoid the 'help' of any organization that suggests bankruptcy.

Reward yourself for good financial behavior
Many people think that living according to a financial budget makes live dull. If this is the case for you, reward yourself whenever you successfully meet your budget. Of course, don't spend too much…

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