It should not seem surprising that Americans are number one on the international list for bad credit, number of credit cards, outrageous spending and other financial woes. The Federal government, itself, is proof that most Americans are not alone in their financial milieus, either.

Not Alone

While deep debt can be an awfully oppressive state for consumers, it often helps to know that one is not alone. Millions of Americans are much more in debt over their heads than those that are not. In fact, many trillions of dollars are currently held in credit card debt by Americans. Most sources claim that the modest average credit card debt carried by a household is between eight and ten thousand dollars. For many people those figures are climbing.

Free Spending

In the last few years it is not unreasonable to see how our debt could have spiraled out of control. Since 9/11, most Americans have been in a spending frenzy. Consumer confidence has generally been good and the economy has been buoyant, housing markets are booming, the stock market has been generally healthy and the fiscal aura has apparently rubbed off. But instead of being fiscally responsible, many Americans have been taken in by the promises of credit cards. And for many there is no other way out than with more debt.

Getting Out of Debt

Getting yourself out of debt is significantly more time consuming than getting there in the first place. Often consumers must resort to consolidating loans, refinancing mortgages, taking out equity lines of credit on homes or even hocking some of their finer belongings. The worst case scenario, of course, is declaring bankruptcy.

Know Your Credit Report

Do not run from your credit reports. In fact, American consumers are now able to receive a free credit report annually from each of the three credit reporting agencies: TransUnion, Experian and Equifax. Most financial advisors recommend that consumers become familiar with their credit reports, taking care to report or dispute any discrepancies. Knowing one’s credit report is the first step to digging out of debt.

Personal Bankruptcy

Personal bankruptcies have skyrocketed in the last decade, due in large part to the extreme debt being incurred by consumers who are unable to repay their debts. While bad credit remains on a credit report for seven years, a bankruptcy hangs around for at least ten.