1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will term you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have atleast 2 credit cards and 14% of them have 10 or more credit cards.

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The Hidden Truth behind debt help agencies in Albuquerque

When You Need Help

If you are overwhelmed with credit card debt, and cannot see your way out, chances are you are considering using some type of debt help or relief agency. They advertise all the time and their promises are great. They can settle your debt for pennies on the dollar and will get you debt free and repair your credit rating to boot. Sounds almost too good to be true. In some cases it is, so you need to be very careful as your research your options for debt help. The hidden truth behind debt help is that lots of firms out there charge very high fees and do not do the best job of providing you lots of other services you need. The other hidden truth is that there are some great organizations which will help you for moderate fees and lots of free services.

Finding the Right Organization

Start with the nonprofit agencies. These are funded by sources other than client fees, so can provide a wide variety of services for free. These usually include complete analysis of your finances, the development of a reasonable budget, and clear explanation of your options for reducing and/or eliminating your debt. As well, they will provide debt management plan administration, negotiating with your creditors for the best debt reduction possible and administer the plan, giving you one lower payment. There are fees for the debt management plan services, but if the organization is truly nonprofit, these are moderate and in line with recommendations of national associations. Before you sign on the dotted line, be certain that the agency is affiliated with at least one national association and has certified counselors, trained in the best counseling and settlement techniques.

Two agencies which may be worthy of your research are:

CCCS Southwest (www.cccsintl.org)
YWCA Credit Counseling and Homeownership Center

Additional Budget Advice

You can find lots of ways to curb expenses yourself as you are going through the process of debt reduction. Public transportation in Albuquerque is great and cheap. A $1.00 ticket will get you travel for an entire day, so why not use it to get to work? And you know those great restaurants around your work that everyone goes to for lunch? That will need to stop - use the money saved to begin a small savings account for future emergencies. Shop smart, going to the store with a list from which you will not stray. Plan your shopping and errand trips so that you use as little gas as possible.

Budget Advice for Travelers

If you are planning a trip to Albuquerque and must visit on a budget, consider staying at the route 66 International Hostel. You can get a private room for $20 a night and it is conveniently located close to the Old Town District that you'll want to visit anyway. There is a great Flea Market in Albuquerque not to be missed. As well, check out the Indian Pueblo Cultural Center, the National Hispanic Cultural Center and the Museum of Art and History. Cheap eats are available all over the city - use them.