What do an increasing number of people consider to be their biggest financial problem? The answer would be the large amount of credit card debt that each family is carrying. We’ve used them to carry us through the current recession but the end may take longer than we think. So here are six things you should know about while we’re waiting for the turnaround.

1. We are talking about unsecured debt that accumulates interest if not paid off each month. If you miss a month you can count on being charged a late fee and being reported to the credit reporting agencies. Missing a payment can stay on your record for seven years!

2. Companies exist who will take your debt and work with your creditors to work out an acceptable payment plan. Don’t wait too long to enlist their help if you feel it’s appropriate. Look for a company that won’t fit you into their plan but instead will fit their plan around your financial needs.

3. We need to teach our young people how to manage credit. They are graduating from college with this kind of debt. It’s not very helpful in starting a new life with an old debt hanging over your head. They really do listen to what you say and you’ll be surprised when you see that your advice really did sink in.

4. When you have your spending under control, you’ll need to make a commitment to yourself to spend only what you can pay back at the end of the month. Set the credit cards aside and stick to the road to becoming debt free.

5. A large amount of debt will reduce your financial options. If you have a low credit score because your credit cards are maxed-out, then you’re going to pay a higher interest rate when you want to buy something.

6. Many people have turned to credit cards to extend their budget in this recession. They use them to fill the gap and are increasingly using them to do things like buy groceries and pay the mortgage. The problem is that it may take longer than we think for the economy to turn around.

Take responsibility for your money and what you spend it on. If you’ve let yourself get in over your head then ask for help and we will find someone to lead you through the maze that is the repayment of credit card debt. Credit card balances grow when they’re not being observed so be vigilant about keeping them in check and serving you instead of being a drain on your money and your emotions. It’s your money, let’s use it to benefit ourselves and our families, not to hang over our heads like a black cloud.

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