Credit card use is totally out of control and creating problems for thousands and thousands of people — actually, it is credit card misuse that is the problem. Credit card companies have made it far too easy for us to have credit limits beyond what we should ever need and the other thing is, we sometimes forget that using our cards is actually making a loan. We tend to think in terms of a temporary advance until we can pay the bill next month. But then, we don’t pay that charge off when the bill arrives and the interest charges begin to mount and so on and so on.

If you are in a position that you are using your credit card for some of your daily living expenses out of what seems to you like a necessity, then you are either already in trouble or you are headed for it shortly. If you are already there or if you can see it looming in the very near future, now is the time to head it off and get yourself some help.

The media is flooded with advertisements for companies that can help you eliminate your debt. They claim that they can lower your interest rates, get rid of late fees and consolidate your debts. Well, they can. You will wind up paying them a fee to help you with it, but if you find a reputable company, it may be the single best thing you ever did for yourself.

This is a brief summary of what happened to a friend of mine. She was in her forties, went through a bitter divorce, found herself in financial trouble when she wound up with one income and continued to try to live as if she still had two. Raising children is expensive and not all dads are forthcoming with child support. She began to use her credit cards for everything from cash advances to cover daily living expenses (food, lunch money, clothes, gas) to mini-vacations for herself and the children because she felt so guilty that they didn‘t have as much as they did before. Before she knew it… WHAM! She was borrowing from one card to keep the other one at bay. When there were no other answers, she sought out the help of a debt consolidation firm and put her problems into their hands. They reminded her that she was only one of thousands in that position and with all of her information, they set up way for her to pay them one lump sum, they took their portion out of that and then they dealt with her creditors. Meanwhile, she had to tighten her belt quite a bit, as well as take on any odd jobs she could to make a little extra money and then she and the children began finding amazing things to do right there in their community that were free and fun. Most likely within about three more years, she will be debt free. And as important as that, she can hold her head up and she’ll never be afraid to answer that telephone again for fear it‘s another bill collector. She used what she had available to her to turn her bad situation into a good one. If a single mother of two can find a way to make herself whole again, I think anyone can.

If this is in any way a familiar situation for you, do not hesitate. There is no harm in admitting you have a financial problem. The harm comes in thinking if you ignore it, it will just go away. It won’t, it will just continue to grow until you will have the Godzilla of all problems. Next time you see one of those advertisements, whether on television or magazines or newspapers, take down that number and give them a call. A consult is usually free and then you can determine whether or not you want to go forward with their program. Let me know how it works for you.

Well, wise or not, these days easily acquired credit and resulting debt are a part of our day-to-day lives. Unfortunately, the ease and convenience of instant credit has left many of us depending far too much on borrowed money and in turn living in a raging sea of debt. We jumped into those waters before we knew how to balance the convenience of using credit cards and staying out of deep, deep debt.

Having credit is a good thing if you are using it responsibly. It establishes the fact that you can be relied upon to pay your debts, that you are creditworthy and it may in fact help you secure a lower interest rate when you find you have the need for an important loan, such as a mortgage. Without a good credit history, your chances of qualifying for such a loan are greatly reduced. However, using your credit cards unwisely and to the extent that you begin to spend more than you earn can lead to overwhelming debt that you may never be able to pay off.

Installment loans are a good way to establish credit. The interest rates can be very competitive and specified monthly payments are made at the same time every month with a specified time period established to pay off the loan. There are no surprises when the payment becomes due. Often, even if you have the cash to pay for a moderately priced purchase, it could be wiser to use an installment loan. That would of course depend on the interest rate you are earning on your ’cash’ from the bank and the interest rate you could get on an installment loan. If the bank is only paying you 2% and the installment loan has an interest rate of 6%, you may be better off using the installment loan for the purchase, and possibly paying it off earlier and generating a good credit standing by doing so.

It is very important to periodically take a look at your credit card debt. If you can see a pattern of making impulse purchases or purchases that you know you cannot afford, then it may be time to consider paying off that credit card debt. Analyze your monthly expenses and determine what spending you can eliminate and put that amount towards your credit card debt in addition to your regular payment — and don‘t make any more charges on it until you have it under control. Every time you make a purchase on your credit card, you have just borrowed more money. Every time you consider making a purchase on your credit card, ask yourself if you would borrow that same amount from a friend or family member. That may help to put it into perspective.

If you find yourself drowning in that sea of debt, it would be wise for you to seek out a financial advisor that might be able to help you reallocate your income more effectively to address your credit card debt. There are many companies out there that can assist in getting you out of debt. Whatever you do, always keep in mind that spending more than you earn in even a short period of time can be very dangerous, but doing it over an extended period of time can mean financial ruin.