Credit Card Debt Advice for Residents of Colorado

If you live in the state of Colorado, it is probable that you have been affected by the recession to some degree. The rate of unemployment for Colorado has risen to around 7.4% of its workforce. While the unemployment rate is not as high as the national average of 9.4%, it still translates to about two and a half million Colorado residents who are without jobs. The loss of income can be a frightening ordeal for a family. The average family in the United States has precious little in the way of savings, and are, generally, ill equipped to manage a financial crisis, like the recession, without some form of aid.

The idea of a credit card seemed like an attractive idea when it was initially offered, did it not? In the credit boom around the turn of the new millennium, the beginning monthly payments for a new credit card seemed low and the interest rate was not unreasonably high. However, these offers have now resulted in the fact that the average citizen in Colorado had roughly four credit cards. The combined total of debt from these cards hovered around $5547.67 with an average interest rate of 12.34%. According to MSN Money, 14.5% of Colorado citizens are already using more than 50% of the credit available to them.

In the throws of a financial crisis, a person does not want to think about facts, figures, or statistics. With a minimum amount in savings and the bleak prospect of no foreseeable, future income, the credit card is the first tool the average consumer reaches for. It is necessary for the citizens of Colorado  to take precautions to protect themselves from falling into the quagmire of credit card debt. Education is the key solution to mastering your credit card debt.

Your debt must be prioritized. Secure debt, such as your mortgage payment or your car loan payment, should be your primary concern. However, your unsecured debt should not be ignored. The statue of limitations dictates that a defaulted loan can remain on your credit report for up to six years. A default on your loan could seriously affect your FICO score. The average FICO score in Colorado is a 674 according to Lending Tree. As the unemployment continues to rise slowly, those who are forced to reach for their credit cards will rise as well. As the amount of credit card debt increases, interest rates tend to increase as well allowing for further debt for the consumer. This vicious cycle will continue to lower the average FICO for Colorado.

After you have examined your amount of debt and sorted it into what is secure and what is unsecure, the next step is utilize the tools available on our website to determine the best personal solution for you. The fine print for the terms of service agreements with lenders can often be difficult to decipher. The glossary, available on our website, is a useful tool in decoding the tedious legal language used in service agreements. An understanding of these terms can lead you to make decisions that can reduce the amount of money you spend in minimum payments every month. For example, it might be more feasible for you to transfer the balance of a card with an exorbitant interest rate to another card with a lower interest rate.

If you have a certain amount of disposable income each month to put towards your credit card debt, our debt rolldown calculator might be a good option for you. Essentially, this calculator allows you to pay off the credit card with the highest interest rate first. When this card is paid off, the payment is then rolled on to the credit card with the next highest interest rate and so forth. Other calculators, with different options for configuring payment plans, are available to you. However, once you have pieced together a working budget, it is critical that you maintain your plan. Many people make unnecessary, impulse purchases of items they simply "cannot do without". The craving to satisfy your desires is difficult to resist, but ultimately, it leads to the further elevation of your credit card debt.

If you simply feel the amount of your credit card debt is too great for you to handle alone, debt consolidation or credit counseling might be the appropriate choice for you. Credit counseling provides financial advisors to assist in debt relief without being forced to declare bankruptcy. Debt consolidation is the taking out of one loan to cover your multiple loans, often at a much reduced interest rate. There are multiple advantages to debt consolidation: one monthly payment, lower interest rates, and fewer creditors to deal with. The lessened hassle of dealing with multiple lenders and the lack of having to make multiple payments ever month is attractive to many consumers. If you live in the larger cities of Colorado, Denver or Boulder, there will be no shortage of options for debt consolidation companies or counselors willing to help you.

According to Myfico, on average, the modern consumer has a total of thirteen credit obligations on record with any given credit bureau. These include credit cards and installment loans, such as auto or mortgage loans, Of these thirteen credit obligations, nine are likely to be credit cards and four are likely to be installment loans. Consider these statistics:

* With 450 million credit cards in circulation in the United States, Visa's customers conducted more than one trillion dollars in transactions in 2007.

* The United States Census Bureau determined that there are more than one billion credit cards in use in the United States today. If stacked one on top of the other, they would equal the height of thirteen Mt. Everest.

* In 2006, before the recession, consumers possessed between $750 to $800 billion dollars in credit card debt that was owed back to lenders.

* $43 Billion were made fees and from late payment, over-limit, and balance transfer fees in 2004.

* Congress' Joint Economic Committee discovered that as general household wealth declined, more American families are facing financial distress due to higher debt burdens. In 2007, before the recession began, 14.7% of families in the United States had debt exceeding 40% of their income

When viewing these statistics, it is quite incomprehensive the staggering amount of debt consumers are carrying. While Colorado is firmly in the middle of the group concerning statistics on national debt trends, education will be instrumental in finding your best personal solution to prevent you from becoming a statistic. When you have exhausted all other options, our website can be a source of help. Take heart in knowing that you are not alone. We are here to help.

By contacting your elected officials, you can inform them about the abuses perpetrated by credit card companies. This is important in encouraging the continual reform of credit card laws. Regardless of your location, Fort Collins or Aurora or somewhere else, contact your Senators and Congressmen to report fraudulent practices. You can make a difference.

Contact Colorado's Senators About Credit Card Reform
	Senator Mark Udall PHONE: 202-224-5941 (DC office) FAX: 202-224-6471 (DC office)		Senator Ken Salazar PHONE: 202-224-5852 (DC office) FAX: 202-228-5036 (DC office)