Coping with credit card debt is not as difficult as you might think. If there is any consolation, you’re not alone with this situation. At some point, many people like you will face a financial disaster involving credit card debt.  It’s just how you manage it that marks you out from the crowd.

More and more people are now in the uncomfortable position of not being able to afford the minimum re-payments on their credit cards. Or, worse yet, cannot even afford to pay back the minimum monthly re-payments. In today’s world, it is often easy to get in over your head and find yourself spending more than you can actually afford. It seems that everything is growing in price, apart from wages, and it is very easy to fall behind when trying to keep your head above water.

Learn How to Reduce Your Debt

What you need to do is to learn about more ways to reduce your debts. A basic loan is the simplest form of debt. It consists of an agreement to lend a principal amount for a fixed period, to be repaid on a given date. Is it easy to pay a debt? Yes, but it will take some hard work and sacrifices before the individual can live a life free from the shackles of un-manageable re-payments.  The reality for most people is that there is not enough money to repay the loan in one swift blow. This is because you need to pay for other things in life, such as rent, gas, food and clothing.

One way of paying off your debt could be to borrow money from family and friends. A certain amount can be collected and returned later without incurring any interest amounts. If you are struggling to control costs, you should seek help from a financial expert. These professionals can deal with banks and even consolidate the balances of up to 40/p>

Debt Consolidation Could Help You

Individuals or families in debt run the risk of losing their homes, vehicles or other assets. Many of those who do not own a home or property may never be able to own one. If you have a debt and that debt includes two or more monthly payments to lenders at high interest rates, you do not need to be held hostage by burdensome repayment plans. Combine what you have with a debt consolidation loan and watch your monthly payments and overall debt drop dramatically.

How long it will take to become debt free and how much you have to pay interest in making minimum monthly payments? For many who buy wisely, the equity will be important. A mortgage can be used to pay a high dollar items, pay tuition, and be used to pay credit card accounts upscale.

The worst thing that you can do is to get a bad credit rating.  This ends up making it difficult for you to apply for a credit card or a loan that you might need at some point in the future.

Debt consolidation is a quick and easy alternative to making re-payments and a debt counselor will help you to evaluate your current situation, past debts and help to create a budget for you.

By using debt consolidation techniques, your average interest rate is reduced as all of your loans can be transferred to one single card that has a lower interest rate than what you are currently paying.

Some statistics for you: The average American household carries nearly $20,000 dollars in credit card debt. When this amount is added to the mortgage and amount on a typical home, the debt can be overwhelming. The first step toward taking control of your financial situation is to do a realistic assessment of how much money you earn and how much money you spend. Start by listing your income from all sources. Then, list your fixed expenses, such as the same monthly mortgage payments, car payments, and insurance premiums.

Guest Post: This article was written by the editors from the Wall Street Subscription website.  For more information on how to manage your finances make sure you read the personal finance section inside the Wall Street Journal.  Click here for a Wall Street Journal Subscription Discount.