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US Households Drown In A Sea Of Debt-Exploring The Options To Become Debt Free 

 The American households are still struggling to stay afloat amidst the global financial crunch. They are trying their best to get themselves back on track, as per a recent research. A study from Equifax, a credit reporting agency has shown that the debt burden of some household comprises 17% of their income and this is becoming a unmanageable burden on them. Experian, another credit reporting agency has also analyzed the consumer spending habits and has found out the average consumer now owes more than $4500 on credit card debt. This amount has been down by a modest 4% from the average of last year. All such people are desperately looking for ways to become debt free so that they get back a grip on their personal finances. Have a look at some do it yourself steps that will help you live debt free.

 1. Follow a budget: The increasing debt level in America implies that the people in the US do not follow a budget. Thus, this is the most important step that most people need to follow in order to become debt free sooner. Maintain a frugal budget that will disregard all the unnecessary expenses and help you concentrate only on the things that you cannot do without. Through a budget you can easily keep a close watch on your income and expenditure and thereby monitor your savings. Make sure you evaluate your budget at the end of the month so that you know where you did well and where you didn't.

 2. Make a list of your debts: Unless you make a list of all your debts, you will not be able to devise a saving plan. Gather all your financial documents and write down the principal amount, interest rate and the due dates of your multiple credit cards. Add up the total amount to get an amount that you have to repay at the end of the month in order to stay away from debt.

 3. Contact each creditor to negotiate a better term: Most debtors refrain from staying in touch with their creditors when they incur debt. They think that the debtors will not support them when they need help. But the truth is that the creditors are the best persons who can help you get back on track. Call up each of your creditors to make sure that you negotiate a better term on your cards to simplify your debt repayment procedure.

 4. Stop using your credit cards: Restraining the usage of your credit cards is the best way to secure a debt free life. While you're attempting to lower your debts, make sure you do not purchase anything on credit as this will push you deeper into the credit card debt hole. Carry cash while you go for shopping and stop shopping as soon as you exhaust cash.

 Therefore if you're one such American who is up to his eyeballs in credit card debt, follow the do-it-yourself steps mentioned above to get back on track and live a debt free life. You can also seek the help of the professional companies if you think that you cannot handle your huge debt burden on your own.

 

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