Nevada Credit Card Debt

Nevada is famous for its spectacular nightlife, its sinful cities Las Vegas and Reno, its desert landscape and the large number of silver deposits once mined there. Although cities like Las Vegas and Carson City still get their share of tourists trying their luck at the casinos or watching one of the thousands of entertaining live shows, Nevadans have seen their fair share of disappointments in regards to the economy during this recession. Although is considered "the Silver State," Nevadans know that, despite their cute nickname, the economic recession has brought less silver to the state and more debt than ever before. With a soaring unemployment rate, tumbling GDP rate and looming foreclosure rate, Nevada's future is looking as arid as the Mojave Desert. One option that many Nevadans have turned to for their credit card debt is debt consolidation.

NV's Sinful Debt Statistics

So let's look at the facts and figures that have expert financial analysts claiming that Nevada is losing big time during this recession. Although Nevada's taxes are one of the lowest in the nation at 6.6% and NV has the 15^th highest median income in the nation at $54,744.00, Nevadans are currently struggling to keep their careers and their houses. In 2008, Nevada was faced with the highest unemployment rate in history at 11.3%. Furthermore, the Silver State's foreclosure rate is at 7.6%. This is the highest in the nation with 77,693 filing and an increase of 125% from 2007. In regards to gross domestic product, 's economy is faced with a 0.6% decrease from 2007 due to the economic slowdown in construction, finance and insurance industries among others.

Another factor to consider is NV's FICO credit scoring, which currently stands at 655. This is the second lowest in the nation just above Texas and well below the national average of 680. According to the experts, a credit scoring of 700 or below is considered 'poor' and will result in stricter penalties, higher interest rates and harsher payment terms when obtaining a loan. These strict loan terms have Nevadans struggling each month to pay the bills on time and in full. After they have paid off the car repayments, the mortgage rates and the student loan fees, there is often no extra spending money for the month ahead. And, thus, Nevadans turn to their credit card for everyday items like food and fuel.

The average Nevadan has a debt on his or her credit card of $9,218.76 with an annual APR of 20.53%. Keep in mind that this debt is only one of the many debts Nevadans are faced with. However, credit card balances are a killer when it comes to interest rates and penalty fees and most credit card owners find it impossible to pay their credit cards off in full. Instead, Nevadans are incurring an additional $1,900.00 per year of interest on top of their already ominous debt.

Understanding Your Credit Card Debt

Getting out of debt may seem simple on paper - all you need to do is pay off that enormous credit card fee each month right? Unfortunately, it is never that simple. One of the ways you can work towards getting that payment down is to dissect your current credit card terms, conditions and fees to see where the outstanding debt is really coming from. There are four important factors to understanding your credit card payment terms and inevitably, the accumulated debt.

• First of all, check to see if you are paying an annual fee. While some credit cards with lower credit limits offer no annual fee, most credit cards with lower interest rates and rewards points charge a fee that can be anywhere from $15.00 to $100.00 per year.

• Next, look at your interest rate. In NV, the average annual APR is a 20.53%, which is one of the highest in the nation. If your interest rate is above 20% and you have over $10,000.00 in debt, then you are paying $2000.000 of interest every year, on top of this debt. Furthermore, because interest is added to your credit card statement monthly, often when you only pay the minimum amount each month, you are simply paying off the interest and nothing more.

• Another factor to consider is your payment terms. When does interest start to accumulate? Most credit cards will offer a 21-day leeway before charging interest on purchases. Look at your current credit card terms and try to get this number bumped up to 30 days or more.

• And, finally, look for additional hidden fees and penalties. These may include a cash advance charge, a cash advance interest rate and late fees. These annoying little fees may seem like peanuts, but, as you will soon notice in your monthly statements, these numbers add up.

American's credit card debt reached $972.73 billion in 2008, up 1.12% since 2007. Furthermore, nearly 14% of all consumers' disposable income went to servicing this debt. With numbers like this, it's no wonder the credit card industry in a trillion dollar industry with some of the bigger credit card companies making over $1 billion in 2008!

Solutions for Credit Card Debt

Before you head off to Vegas to try and double your money - or your debt - it might be a better idea to sit down with your family and discuss your finances. Make a spreadsheet of all the bills, the debts and the daily, weekly and monthly spending habits. Include your monthly income as well as any additional disposable income coming in. Make a column for those everyday expenses such as groceries, cleaning products and clothing as well as those monthly and weekly bills including your gym membership and parking permit. If you are spending more than you make each month, which 40% of all Americans do, then you will need to make some serious spending changes. For additional help, consider hiring a credit councilor who can look over your monthly spreadsheet and determine a budget based on expert advice and personal assessment.

Another option when it comes to managing this debt is to opt for a debt consolidation loan. Although consolidating your debts will not make those looming negative numbers magically disappear, they can make debt reduction a lot more attainable. Debt consolidation will eliminate those numerous monthly bills and debts and consolidate all your payments into one bill. Debt consolidation loans offer lower interest rates, longer payment terms and a more manageable approach to paying off those debts without continuing to sink. Debt consolidation also provides a way to stop those harassing phone calls from debt collectors and penalty fees from credit card companies. If you are like most Nevadans and concerned about your financial future, consolidating your debt may be the personal solution you have been searching for.

Regardless of how you decide to confront that intimidating debt, it's important for all Nevadans to make the step towards financial reform. Life is all about taking risks; however, gambling with credit card debt is not a game you are going to win. It's best to know when to walk away and get the financial help you need.