Shannon Black

The Average American Household Debt Is $54000

Personal debt is on the increase

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Phoenix, AZ -- (SBWIRE) -- 04/08/2013 -- How best to tackle high interest debt is a question which is facing millions of Americans all over the country. The average American household debt is coming in at around $54000, with high interest rate debts being a large part of this eye watering figure. USA debt management is something which a lot more people are considering in an attempt to get their finances back on track, especially those encountering trouble in paying back their debt.

Payday loans and credit cards are two of the most commonly found sources of high interest rate debt in America. Credit cards can charge you an APR of 20-30%, and payday loans can have APR's in the thousands! One of the reasons why these two debts are especially difficult to pay off is that the monthly repayments pay off the interest on your debt first, leaving the original debt to remain untouched and grow by the month. Then as debts become larger, so do the repayments.

Previously the commonly held view was that a person should go for the debts which have the highest interest rates first in order to pay off the debts quicker, however this is not necessarily true. There are a large number of different ways in which debt management can help get a persons debt under control.

One thing a person can do is to ask their lender(s) for a reduced interest rate. If a person can prove to them that their finances are in trouble, they may be able to negotiate a reduction (temporary or otherwise) in their interest rates.

Tackling smaller debts first is an important part of debt management all over the nation. A person might think that it is better to get rid of their bigger debts first, believing that they will then free up more of their money to go towards smaller debts. If a person goes for the smaller debts first and clears those quickly, they should use this extra money to help pay off even more of their larger debts. It is important to remember that if a person pays off some of their smaller debts, they should not use this as an excuse to go out spending money recklessly.

Wanting to be debt free is a good thing, but being obsessed with becoming debt free with not only hinder a persons attempts at debt management but it will also force them to do things financially that they may not actually be ready for. Being in a situation where a person can make the right decisions for both the short and long term is the best starting point for being debt free. Adopting a sensible approach is especially important given the economic uncertainty which is gripping the country, and indeed the whole world. Job security is something which no one can take for granted.

Debt management is arguably the best way to tackle debt, as it doesn't just consolidate debt to make it seem like the problem has gone away when in reality it hasn't. Debt management sets out a clear management plan for to enable a person to become debt free.

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About Debt Helper
Debt Helper USA, (, based in Phoenix, AZ, is a leading provider of Internet based, personal debt management advice.