Financial Regret? Step Up to a Debt Reduction Challenge in 2005

More Credit Articles On Tips, Resources and Great Ideas:

"Financial Regret? Step Up to a Debt Reduction Challenge in 2005

(ARA) - At a time when the average household owes approximately $9,000 in credit card debt, one credit counselor is asking Americans to step up to a debt-reduction challenge:

'If 2004 was your year of plastic, resolve to make 2005 the year of green,' says Michael McAuliffe, president of Family Credit Counseling Service, a nationwide non-profit offering financial education and debt repayment solutions.

McAuliffe is concerned about the amount of debt families are carrying. 'At an average interest rate of 18 percent, it can take more than 30 years to pay down a $9,000 balance by making just the minimum payments, and cost two and a half times the balance in interest,' he says.

By resolving to get ahead of compound interest, Americans can more quickly save money for vacations, education or other personal and family goals. And, says McAuliffe, setting a financial resolution isn't just about the money. He points out that the stress caused by debt can impact all areas of life, including relationships and work. 'Getting ahead of debt will reduce stress and help you live a more satisfied life.'

McAuliffe provides the following tips to pay down debt:

Have a plan

Track your family's spending to determine where all of your 'extra' money goes and create a detailed monthly budget. 'Don't get nickeled and dimed to "