The average credit card holder owns, or rather is owned by 5.45 credit cards. This will lead to financial disaster if not monitored. Read on to see ways of avoiding credit card debt and how to get out of debt. New reforms enforced in the US. are fighting against debt/ Loan companies who’ve been grossly unfair to consumers for decades. 5.45 credit cards per card holder adds up to almost one trillion dollars of debt each year. This equates to over $50 billion in interest. Tht kind of money can support small nations. Thats revenue that banks and financial institutions have been earning for decades at peoples expense.80%of adults in the US. are ‘owned’ by Debt. There are basic rules that must be put in place in order to avoid serious debt. Theres also ways of getting out of debt that consumers should follow. People often find it easy and very tempting to get trapped into debt because of the false illusion created by banks and loan companies.When people go fishing for loans there’s a high chance theyll snare a shark without the knowledge of what to look out for…MORE PLASTIC THAN FANTASTIC.. If you don’t want to become another statistic, its vital you take a closer look at the fine details of loan contracts before signing the dreaded dotted line. The basic rule is…..if you don’t understand the contract, don’t sign the dotted line! Ask the person you’re dealing with lots of questions until you clearly understand exactly what you are getting into; such as “what’s the interest rate?..“how much will the repayments cost me in the long term?” This way you’ll avoid things escalating out of control. Its also important to know what fees and hidden charges may be added and whether interest rates are locked into your contract or not. This means, does the interest stay the same throughout the contract, or could it change for the worse? Don’t be afraid to spend time researching or asking hard questions. If you don’t, you could spend years trying to get yourself out of debt when it could have been avoided by spending a little more time looking over the details. THE IMPULSE OF MAN... ‘What you own today, may end up owning you tomorrow.. Human impulse has been a catalyst for many regretful decisions, whether in relationships, crime, or actions that could have been avoided by a little more foresight. If you practice patience, you’ll be thankful you didn’t get into debt. Whether purchasing items you rarely use and regret buying, like a shirt your wear a couple of times, and end up paying for it with… the shirt off your back. Saving has always been the best option. Most things purchased on credit end up costing you more than the original price and can end up taking a long time to repay in full. ‘If shops displayed the price of an item on its labels after the interest on a loan and the fees or penalties added, then people would rarely purchase items on credit’However Credit cards aren’t all bad. Theyre mostly used sensibly for useful daily transactions. Its the misuse, and lack of public knowledge which ruins financial freedom. Its important to pay off the borrowed amount before it accumulates interest. If not, this is one of the ways credit providers/ banks earn billions. For example, if someone owes $1,000 and repays it in full within the grace period, no interest will be charged. However, even if only one dollar of the total amount is unpaid by that time, interest will be charged on the full $1000 from the date of purchase. If you own several credit cards and want to get out of debt soon..rather than later, pay off the loan with the highest interest rate first…Its always dangerous when people bury their heads in the sand and think problems wont arise down the road. If you leave repayments unchecked, a dark road will lead you to bad credit rating plus unreasonable fines and fees. If debt problems have become too difficult, its important to get in touch with credit providers asap and try to work some arrangement out you can afford. Most companies are willing to negotiate terms rather than throw you under the bus.Sadly debt problems can be too overwhelming for some. Financial pressure pushes over 5000 people to commit suicide every year in the US. This is on the increase. People unable to handle what they perceive to be a lifetime of painful financial hardship chose to take a quick bankruptcy option. However there is help for those in need. Many governments in developed countries offer free help and advice to help people navigate away from the misery debts can bring.Good news from the US on credit card reforms..Within his term, President Obama acted on US debt problems which loan companies created. Obama introduced new reforms for companies and banks who had cloaked the facts and figures. Thanks to changes, new contracts must show transparency. Reforms demand that companies must give more notice when deciding to change interest rates and they will no longer be allowed to charge higher interest rates based on consumers previous credit/debt history. By law, these new reforms mean that greedy companies must disclose the total amount that a loan will end up costing when the minimum repayments are made. Lenders must also provide information on how much consumers must pay every month if they want to pay off their loans within 12, 24 or 36 months. This and other reforms helped to shine a light on the greed that credit and loan companies had been responsible for. Lets hope the rest of world follows and imposes credit card reforms so that unsuspecting people arent added onto the ever growing credit and debt statistics...Barefoot Investor Scott Pape is a well known ‘Aussie’ author, TV presenter and columnist who has written two best selling books. Scott explains it all in a humorous intelligent way on how easy it can be for us to fall into financial trouble by spending other peoples money (banks/ loan companies). Scott explains the debt traps and offers useful advice on monetary topics. His books are a must read for anyone who could be tempted to walk towards the dark world of debt. Up to date Knowledge on current financial facts, figures and which companies are either a friend, or foe!..