DEBT MANAGEMENT » Get out of Debt

This is a guest post for Go Banking Rates by our friends at TFC Debt Solutions

Are you struggling with overwhelming credit card debt? Are you losing sleep because youre wondering how youre ever going to come up with the money to pay those bills?

Youre not alone. Many people have lost jobs, are upside-down on their mortgage, have suffered medical issues resulting in unmanageable bills or simply cannot get past the high interest credit card payments and payments that are due every month. Struggling with credit card or any debt for that matter, can be a very difficult and embarrassing situation; but there is something you can do about it.

Here's our plan for managing your debt:

Stop Being Overwhelmed

First things first. You have to get out of mindset of being overwhelmed.

Take charge, take responsibility and control. The easiest way to initiate this change is by grabbing a pen and a piece of paper.

Assess the Situation

Now lets assess your situation. How much money do you have coming in?

Can you count on that money every month, or is there a chance that there could be less than you expect coming in? Be conservative.

Make a Budget

Now grab all your bills and make a list of your monthly expenses. Do your expenses exceed your earning ability, or do you have as much coming in as you do going out? If the answer to either of these questions is yes then you need to do some prioritizing.

Necessity versus wants. What is most important to you? What are the things you can do without?

It is important to make sure the rent or the mortgage is being paid? Some people make the mistake of paying their credit card bills before the mortgage or their rent. If your primary needs (i.e. shelter, food, healthcare) are not being met, everyone loses and no one gets paid. You need to prioritize to find out what is really worth spending your money on, especially when your money is in short supply.

If you would like more information on ways to reduce your debt, or if your situation has gotten past your ability to overcome it, please visit TFCDebtSolutions.com, and find out the options and alternatives that are available to you.

Dealing with credit card debt can be daunting, but dont let it run your life!

The Treasury Department recently reported that the United States debt is dangerously close to reaching its self-imposed limit of $12.1 trillion dollars. Currently, we are only $211 billion shy of reaching the ceiling with an increase rate of nearly $3.8 billion per day. What is the Treasury going to do?

The Debt Ceiling Will Likely be Raised

Most likely, the way that lawmakers will resolve the issue is by simply raising the debt ceiling. According to recent Standard & Poor's data, this has already been accomplished 76 times since 1960 and will likely be done again before the debt reaches its self-imposed ceiling, possibly in Nov. 2009.

What Happens If the Ceiling Isn't Raised?

If lawmakers don't raise the ceiling before it is penetrated, the government will be forced to shut down. While this has occurred in the past without devastating results, there are still potential downfalls. One is that the value of the U.S. dollar will likely plummet, which could affect portfolios worldwide. Also, the Treasury might have to pull off some impressive tricks to come up with money. A few options include:

• Government securities: There is $113 billion available in government securities that are held in a 401k-type plan for federal employees (funds would need to be repaid with interest).
• Government dollar holdings: The Treasury can sell $16 billion in government dollar holds that are held in a currency stabilization fund.
• Fannie Mae and Freddie Mac debt: The Treasury also has the option to sell $165 billion worth of debt from these organizations.

What This Means for You

As already mentioned, not raising the debt ceiling can weaken the dollar. However, raising the ceiling sends the United States further into debt, which can result in higher taxes, reduced benefits and federal aid programs, as well as higher interest rates on home loans and more.

At this point, are hands are tied either way. So for now, all we can do is wait out the storm, hope the economy gets better, and find ways to save money while preparing for an uncertain future.

How do you feel about the nation's growing debt?

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