By Carl Surran
Reduce Credit Card Debt
Fall 2003
Nearly half of all Americans have credit card debt, yet 30% of debtors have taken no steps beyond monthly payments to reduce it in the past 18 months, according to a new survey by Martindale-Hubbell, publisher of www.lawyers.com, and Harris Interactive.
The survey found that reducing monthly expenses was the most common way for debtors to try to reduce their debt. Yet only 28% had transferred credit card balances to lower interest rate cards, and a mere 13% had contacted creditors to negotiate reduced interest rates or payment plans.
"Finding credit cards with lower interest rates and negotiating with creditors are two simple things any debtor can do," said attorney Alan Kopit, lawyers.com legal editor. "There's just no reason not to use any reasonable method to get rid of credit card debt the fastest way possible."
Despite the evidence of a lack of aggressive action being taken, nearly two-thirds of all credit card debtors believed they will be out of debt in one year or less. The facts, however, specify that half of the nation's credit card debtors remain in debt between two and five or more years.
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