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Ways to pay down credit card debt

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    What you do to avoid delinquency

  • Duration 4:29
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It is definitely time for more Americans to become more responsible when it comes to handling credit card debt.

In today's take charge consumer protection segment.

I wanted to focus on a new report that shows that credit card delinquencies are dropping to their lowest level in eleven years.

So do you want to jump on that bandwagon -- -- he.

Now Michael Seymour president of UNI private wealth strategies that's right well that's what we're striving for Michael good to see you.

Hello Jamie thank you for having me.

You know obviously we shouldn't have credit cards we should only buy what we can afford but a lot of people are having to rely on an even for just their daily expenses what are some of the tips that a professional like yourself can share with us to get it under control.

While not.

Only can I share -- -- you know when eighteen years of being a registered investment advisor but this is a topic that I have been through this myself.

And I have you had to dig myself out of a hole in the same situation as many many many of your viewers so I can tell you the first tip is.

Acknowledged that you have too much debt and acknowledge that you need a plan to get yourself out of it.

Get over the embarrassment.

The shame whatever if you have that soda millions of other people it's okay that's step number one.

Just number -- go ahead.

Go ahead plus seven and could -- be -- people.

To actually sit down and write down what you -- because sometimes our perception of what we think we have outstanding is so different from what we really have.

Well I think that's exactly where I was going Jamie the very next step.

He is an absolute every household in my opinion big small big incomes small income doesn't matter.

Every household should take a look at their complete financial picture at least twice a year -- what that means he is who as you referred to write down all your dad.

Write down all your assets your liabilities.

And the most important thing is really understand.

Your household budget.

Most people can't remember off the top of their head what they spend money on it's real easy.

Go to Google search for household budget worksheets and you'll -- hundreds to choose from.

Warning that can be very painful once you do that because you will find that you spending a lot more on wants.

Instead of needs -- -- may have thought no that is so helpful.

You know when it comes to paying back you only have as much income -- your bringing and you can't really -- -- -- in this economy for a lot of people.

Should you borrow from a retirement account to pay off credit card debt.

Well you know that says that's a very.

A -- important question.

Everybody's financial decision situation is true it -- unique.

So every solution.

Regardless of the components -- use needs to be like a custom tailored suit of clothing.

You know most advisors will tell you never ever ever touch your retirement savings.

But for those people out there that might have had a dramatic change in circumstances.

Your income.

You know something along those lines.

-- for somebody like that that's getting phone calls from debt collectors 102030 times -- day.

For you know so few thousand dollars of credit card debt.

But they may have a decent amount of retirement plan savings and yes there are tax issues -- You know that you need to look at did you know for instance you take money out of an IRA and you're not 59 and a half you pay 10% penalty of the you pay your income tax on top of that.

Even if you're in a low bracket that'll probably amount to thirty cents on the dollar.

That she'll lose out of that I got 30%.

Yet 30% is normally more than -- pay a not a credit card but there could be other factors.

Yeah like being able to sleep at night and may -- -- hey get out temporarily and put it back if your situation gets better.

The best thing to do is make some payment and not ignore credit card debt and apparently a lot of people and our country are doing just that thank you so much great tips today.

Thank you.

Well if you want more and how you can take charge and really if you don't who will.

Take a look at a number the consumer issues that have covered go to foxnews.com.

Click on the America's News HQ we -- at the bottom and there's a link.

Four.

America's News HQ in the take charge link is there -- when there's a number of ways that you can take charge and save money always.

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