As part of National Financial Literacy Month, Debt Settlement America offers 7 steps to get out of debt.

Carrollton, TX -- (SBWIRE) -- 04/19/2010 -- Unemployment rates remain high, the economy is still unstable, and more and more Americans are finding themselves struggling to make ends meet. Debt can be an especially large burden, as interest rates and fees may increase at a rate individuals may not be able to keep up with. As a part of National Financial Literacy Month, Debt Settlement America offers 7 steps to help those in serious debt get back on the road to financial freedom.

1) Accept that it won't be easy. Getting into debt took time. Getting out will take even more time. Don't get discouraged if you don't see quick results.

2) Find out how much you owe. Gather your bills for all of your outstanding accounts, including unsecured lines of credit, credit cards, student loans, mortgages, and car loans. Create a spreadsheet listing out who you owe, how much you owe, your minimum monthly payments, interest rates, and payment due dates.

3) Create a budget. You need to know how much you spend versus how much you make. A detailed budget can give you an accurate picture of where your money goes, and can help you decide where it should be going.

4) Take care of needs first. Necessities should always come first – food, shelter, and health needs should take priority over other bills. Secured debt, such as mortgage or car loans, should come next. Unsecured debt like credit card balances should be your lowest priority bill.

5) Create a plan of attack. If you can, pay more than the minimum. Pay extra on debt with the highest interest rates and work your way down from there. High interest rate debt will cost you the most in the end, and will keep you in debt the longest. Paying more than the minimum is the only way you will realistically live to see your debt paid off.

6) Seek professional help. If you can only pay your minimums, or if you are struggling even to do that, you may need outside help to resolve your debt. There are many options available to consumers for debt relief. Research what options or companies are a good fit for you and your family. Whatever plan you choose, be prepared to truly commit to it.

7) Stay positive. Over time, as you climb further out of debt, you will begin to see your finances go from negative to positive, and your credit history and score will do the same. The short term benefits of reduced stress and improving finances will give way to long term financial success.

If you are in serious debt and need help, you may consider enrolling in a debt settlement program. In this type of program, qualified debt negotiators negotiate with creditors on your behalf to secure settlement on your unsecured debt. With programs typically lasting three years or less, debt settlement will allow you to pay off the debts you owe to each creditor for less than your current balances with lump sum payments. The settlements are binding and ensure that no further collection efforts or legal action will be taken on the settled accounts.

Debt Settlement America (DSA) is headquartered in Dallas, Texas and services clients across the nation. Since its inception in 2004, DSA has established itself as a leader in the debt settlement industry. DSA is a member of the US Chamber of Commerce, the Texas Association of Businesses, the American Bankers Association, and a Gold level member of the International Association of Professional Debt Arbitrators. DSA has been recognized as a TASC Best Practices accredited member company for the past three years.

To learn more about Debt Settlement America, or to receive a consultation free of charge, go to http://www.debt-settlement-america.com or call 866-387-3328.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Dallas, TX -- (SBWIRE) -- 03/24/2010 -- The CARD act, which went into effect in late February, was designed to protect consumers from unreasonable credit card practices. Creditors, concerned about potential profit loss due to these new regulations, are already finding ways to charge their clients more by increasing interest rates and creating new fees. Debt Settlement America offers tips for consumers to protect themselves from these new practices.

Under the CARD Act, credit card issuers are no longer able to change interest rates on existing balances in most cases. Creditors do have the right to raise interest rates on existing balances if a consumer is more than 60 days late on a payment on that account. Consumers should make all payments on time, which will keep them free from late fee charges and interest rate changes on current balances. If a creditor changes the interest rate for new purchases, a consumer may decline the increase. However, this may result in the creditor closing the account and requiring the consumer to pay off their balance in five years or less, which may dramatically increase the required minimum payments on the account. For this reason, the safest route is to pay off all balances each month, and to pay down any cards with current balances.

A new feature of credit card statements will be the inclusion of information on paying off balances and making only minimum payments. Clients will now be notified exactly how long it will take them to pay off their balances if they only pay the minimum amount. In addition, the statements will disclose how much consumers will pay in total (including interest) to pay off the account if they only make the minimum payments. Many consumers are likely unaware just how ineffective their monthly payments are in getting them out of debt. Anyone who is able to should always pay more than the minimum payment. This will reduce the interest, the total balance paid overall, and the time needed to pay off the debt.

Creditors are no longer allowed to charge over-the-limit fees, and instead must decline purchases that will send customers over their credit limits. Customers may opt-in to a program that will allow over-the-limit purchases if they so choose. However, debtors should keep in mind that creditors have already begun dramatically reducing credit limits on open accounts, and are expected to continue to do so. Consumers should keep track of credit card limits to make sure they have the available credit they may be expecting. This will save credit card holders from any potential embarrassment and will help them keep track of their personal finances.

Though credit card companies are now required to give 45 to 60 days' notice of most changes to accounts, consumers may not always recognize the notices. Some may mistake the notices for junk mail or unwanted solicitations, which may be mailed out as individual letters or may be included as inserts in mailed statements. To keep on top of all changes, credit card holders should read all mail from their credit card companies. This will not only ensure that consumers are well aware of their account terms, it will also give them the opportunity to opt out of any changes they do not approve of before the change can take effect.

In the midst of all of these changes in the credit world, consumers may find themselves overwhelmed with debt and unsure of what to do next. One option for consumers is to consider working with a debt settlement company. Debt settlement programs work by negotiating on a consumer's behalf to secure settlement on their unsecured debt. With programs typically lasting three years or less, debt settlement allows a consumer to pay off debts owed to each creditor for less than their current balance with one lump sum payment. The settlements are binding and ensure that no further collection efforts or legal action will be taken on the settled accounts.

Debt Settlement America (DSA) is headquartered in Dallas, Texas and services clients across the nation. Since its inception in 2004, DSA has established itself as a leader in the debt settlement industry. DSA is a member of the US Chamber of Commerce, the Texas Association of Businesses, the American Bankers Association, and a Gold level member of the International Association of Professional Debt Arbitrators. DSA has been recognized as a TASC Best Practices accredited member company for the past three years.

To learn more about Debt Settlement America, or to receive a consultation free of charge, go to http://www.debt-settlement-america.com or call 866-387-3328.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm