Washington, D.C., United States (AHN) – Consumers decreased their credit card debt by 11 percent last year, with the average debt load declining in every state.

That information came from a report released Tuesday by credit tracking and financial education website CreditKarma.com. It analyzed data from more than 300,000 of its users.

“The new year typically inspires consumers to get in control of their finances, especially after the bout of holiday spending that occurred in December. Starting in January, you’ll see consumers start focusing on decreasing debt,” said Ken Lin, CEO of CreditKarma.com.

CreditKarma.com found that the average credit card balance was $6,576 in 2011, down from $7,404 the previous year.

However, that decline came in a climate of weak consumer confidence, which kept spending down as banks continued to tighten lending while slashing credit limits for many existing customers.

While credit card debt was down, so were credit scores.

Nationally, credit scores fell eight points to 660 in 2011 from the previous year.

States with the highest average credit scores are:

• California, Massachusetts and New Jersey — 679
• Washington — 675
• New York — 674

States with the lowest average credit scores are:

• Mississippi — 622
• Louisiana — 635
• Arkansas — 635
• South Carolina — 635
• West Virginia — 637

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Toronto, Ontario, Canada (AHN) – The average Canadian pinpoints 55 as they age they would likely be free from debt, according to a Canadian Imperial Bank of Commerce survey released on Monday.

The poll, conducted by Harris/Decima, surveyed Canadians between the ages 18 and 64. It found that only 35 percent of those in the age group 55 to 64 had no debt.

On the average, the respondents see themselves paying off their debts within 10 to 15 years.

Thus, those in the age group 18 to 24 said they would likely be free from debt by 32, while those in the 24-34 group placed it at 44, those in the 45 to 55 group pointed at 60 and those in the 55 to 64 bracket said 65.

However, the study pointed out that most of their expectations of being debt free are unrealistic given their current level of indebtedness.

Christina Kramer, CIBC executive vice president of retail distribution, said that more than a planned timetable to get out of debt, Canadians must also make a realistic strategy that would include extra payments allocated for their debt and to minimize interest cost.

Among the 2,000 respondent, 10 percent said they would never be debt free and 8 percent forecast being in debt until they reach their 70s.

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– Households bear the impact of deficit cut – Average family debt to reach £77,000 by 2015

Families will be hit by a spiralling debt crisis over the next four years that will see average British households plunge further into the red as the government austerity programme bites, official figures reveal.

The Office for Budget Responsibility has raised its prediction of total household debt in 2015 by a staggering £303bn since late last year, in the belief that families and individuals will respond to straitened times by extra borrowing. Average household debt based on the OBR figures is forecast to rise to £77,309 by 2015, rather than the £66,291 under previous projections.

Economists say the figures show that George Osborne’s drive to slash the public deficit and his predictions on growth are based on assumptions that debt will switch from the government’s books to private households – undermining his claims to be a debt-slashing chancellor.

Labour accused the government of piling agony on to hard-pressed families and storing up long-term problems of personal indebtedness.

At last year’s budget the official forecast from Osborne was that household debt – which includes mortgages and credit card debt – would be £1,823bn. But in a recent adjustment not highlighted in last month’s budget, the OBR has raised the figure to £2,126bn.

A Treasury spokesman said Osborne put the adjustment down to “higher-than-expected inflation driven by higher than expected rises in commodity prices”. The Treasury also attempted to head off criticism by saying the OBR had also produced figures showing that the level of household savings was “holding up”.

But experts expressed alarm. The Nobel prize-winning economist Paul Krugman, writing on his blog, said: “People have been digging into the details of the government forecast and finding that it relies on the assumption that household debt will rise to new heights relative to income.

“Why? Because the only way the economy can avoid taking a hit from government cuts is if private spending rises to fill the gap – and although you rarely hear the austerians admitting this, the only way that can happen is if people take on more debt.”

Ed Balls, the shadow chancellor, said: “George Osborne says the only thing that matters is getting government borrowing down. But while he is cutting further and faster than any other major country in the world, borrowing by hard-pressed families is now forecast to rise every year.

“And to make things harder still, George Osborne’s VAT rise is looking like an own goal as it pushes up inflation which threatens higher interest rates for mortgages and household borrowing.”

In the Commons, Labour MP Chuka Umunna raised the issue of the hidden household debt figures with Osborne, accusing him of transferring debt to the overdrafts and credit cards of ordinary families.

Last June, OBR forecasts showed that household debt would rise from an average of £58,000 in 2010 to £66,291 by 2015. Now its projections show it expects it to rise to £77,309. For the country’s 27.5 million households this means an average increase of £11,018.

Tony Dolphin, senior economist at the IPPR thinktank said: “This is the downside of the chancellor’s deficit reduction plan. As tax increases and public spending cuts squeeze households’ disposable incomes, they will be forced to take on more and more debt in an attempt to maintain their living standards.

“George Osborne talks of rebalancing the economy away from debt-fuelled government and household spending and towards exports and investment but the OBR’s figures show his austerity programme will force households to take on ever more debt just to make ends meet. The future growth in the economy that is needed to bring unemployment down will only come about if we choose to live beyond our means.”

The OBR now expects debt as a percentage of household income to increase from 160% in 2010 to 175% in 2015, where last June it was forecasting a small decline. Real personal disposable incomes are forecast to increase by 1.3% over the next four years. Economic policy Liberal-Conservative coalition Budget deficit Borrowing & debt Economics Toby Helm Daniel Boffey guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

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Getting a roommate to help pay the mortgage and talking to lenders about economic hardship options may help avoid bankruptcy. Dear Liz: I earn net pay of $3,200 a month plus $500 a month from a second job. I can’t work overtime because it has been cut out in my first job and doesn’t exist in my second job. I also go to school full time and will graduate in June, so I don’t really have time to work another job. My mortgage is $1,900 a month on an interest-only loan. My utilities, credit card minimum payments and other expenses add up to more than I make. I had been getting by with overtime and paying one card with another, or paying utilities with a credit card. Today I had to resort to using a gift debit card to pay a bill. I also have a mountain of student loans, and I’m behind on them too. I’m about a month behind with three credit cards. I don’t want to file for bankruptcy. I really want to pay my bills, but I’m struggling and don’t know what to do. If I have the slightest financial emergency, I’m in trouble. Can you please tell me what I should do or direct me to someone who can help? I was trying desperately to protect my credit, but I seem to have ruined it.

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Gift from grandfather can help young person get out of the habit of carrying balances and into the habit of paying credit cards in full every month. Dear Liz: My grandfather gave me his car just before he passed away. I drove it for a few years and now am ready to sell it. My question: What to do with the money? The car is worth about $10,000. Should I put the money toward my $13,000 credit card debt or should I put the money in savings, as I currently don’t have any?

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If you’re a bank, things are looking up! The $700 billion from the Troubled Asset Relief Program (TARP) has largely gone to buoying up financial institutions with some help to the struggling auto industry as well. So if your name is Bank of America, Citigroup or GM then congratulations are in order. In fact, over $25 billion have been eagerly repaid by those institutions who are stockpiling funds and do not want to have any government oversight of their business. Go banks!

But—if you’re a homeowner or a potential homeowner, an average American, or a small business then the news isn’t all that great. From where I often sit behind the desk of a real estate radio show and podcast, it looks pretty discouraging. The real estate system is starting to move homes, but lending requirements are stricter than ever, and even high FICO and truly qualified buyers are not getting approval. It seems like we’ve created a system in which no one is deemed qualified. Brilliant.

TARP Funds should help those in need!

How needy are the banks? Frankly, the banks are posting great profits. They are benefitting from government funds, and even Treasury Secretary Geithner has stated that most banks now have more money than they need. That extra infusion of bailout money to repair the financial system seems to have worked—for the banks. What about the consumers?

Loan programs are increasing, interest rates are low—but credit continues to deteriorate! Job losses continue as many businesses scale back on staff and are forced into layoffs. If you’re one of many working Americans who has lost a job or lives in fear of a job loss, then the success of Bank of America doesn’t do much to feed your family or put a roof over their head, does it? They still won’t give you a loan.

And Bank of America is just one striking example of how the bailout funds are working for the big banks and against average Americans. Bank of America posted a $4.2 billion profit in the first quarter of 2009, yet they have $1.3 billion in credit losses. Doesn’t this point to a huge problem that no one is addressing?

Credit card debt is the elephant in the room!

There’s about $110 billion left in the TARP funds. Where is it going to go? I hear all this talk about bolstering the financial industry and getting credit flowing again, but no one is looking at the credit situation from the buyers’ end! Nothing will start flowing until qualified buyers can actually get loans!

Crazy Ringmasters and Hoops for Home Loans

Home values are down and the real estate market is showing signs of improvement; but folks who can finally buy are forced to jump through double hoops. It’s like the banks are crazy ring masters!

Every day I hear from folks who are forced to go through a pre-qualification procedure with one bank, even though they already have a loan with another bank. Why? Banks that have foreclosures don’t even want to do loans on their own foreclosures, so you have to get pre-qualified by the first bank’s loan reps to get a loan with another bank. That’s crazy!

Why don’t those banks open the doors, loosen credit and make loans on their own bank foreclosures to the people that want to buy? If they make the terms better and easier to qualify they can stop the foreclosures, keep buyer paying the loans, and help to unclog the housing market. Everybody wins!

So why isn’t anyone talking about the credit card and qualifying situations? These are the issues I get calls about on my radio and podcast shows every day. Want to buy a home? There are thousands out there that banks, lenders and homeowners need to sell. It’s too bad that no one seems to be qualified to buy them.

We’ve got a $700 billion elephant in our nation’s financial living room. Maybe we should start talking about it.

Moratorium? Is that still on?? I see everyone got quite!!

A lot of the credit debt relief companies are different from each other, on qualification, of what they can do, and on how they take action. The objective is to decrease your credit card payments so you do not go into credit card default. However, if you are now defaulting on your credit payments or will be very soon, you may want to look into one of these credit debt relief companies sooner rather than later.

A debt relief company can help you figure out how to get free from the enormous debt load that may have occurred as a result of loss of job, bad financial management, ill health, family emergency or other difficulty. They can play as a go between for you and the credit establishments.

It is very important before you decide to hire a credit debt relief that you look into the top debt relief reviews and get the best company you can. After all, it is your good name that will be in trouble in case you employ an untrustworthy company or, if you do not do anything about your financial difficulty.

The simple truth is, credit companies actually do not want you to be in credit default and they may be willing to take significantly less than you think to be able to clear out the debt on their books. Unless you know how to negotiate a credit payoff, a debt relief company is able to do it for you and you can finally end up saving thousands of dollars.

This is why it is important to have the top credit debt relief company handle your case. They can possibly save you a ton of money in the end. Bear in mind, it certainly matters who you owe, what you owe, and the financial situation you are in at the present time. When a lump sum settlement is not possible for you, there are always alternative methods to negotiate the debt, you just need to talk to one of the credit debt relief companies to find out what your options are.

With the outcomes of credit debt relief reviews, the task of has been accomplished for you. Reviews are performed using conditions such as experience of the debt relief company, savings you get, customer service, and reputation, to name a few. This leaves you with more time to focus on resolving your debts as soon as possible.

All in all, you do not have to feel alone with these sorts of credit issues or credit card balances, many are having the same problem. So do something about your debts before it gets a whole lot worse, which certainly it will unless you act on it. Look into a credit debt relief company that can be a go between for you and the credit companies. Just bear in mind, if you do not do something about your credit problems, they will soon enough do something to you.

Credit debt relief reviews can help you make an educated decision when choosing the most effective credit debt relief option for you. Obtain the low down immediately in our debt relief overview.

There aren’t many experiences that are more stressful than having a lot of debt that you aren’t able to get paid. Its like the waves of the ocean, more come in everyday. It can seem like a never ending process. You need a way to break out of this cycle and one way is to get serious about credit card bill consolidation. To consolidate credit card bills is an effort. Its hard work but its one of the few ways to truly get on top of credit card debt.

The first step is to find the right entity to work with to help you consolidate bills in a professional way. Non profit organizations are a great place to start. They aren’t trying to make money on your situation which gives you common goals and objectives. They can work with you to consolidate credit card bills with your credit card providers. They can generally negotiate a large discount as to the principal balance owed as well as get the interest rates reduced.

To find a good company, you can also ask your family and friends who have gone through a similar experience and ask them for referrals and recommendations. They might be able to get you a good company in a shorter amount of time. People who have already accumulated debt and needed the services of a private organization to handle their payments, finding a great company will not be difficult.

Make sure that the company has reasonable terms of agreement and set prices for their services. Browse through their website or arrange a one-on-one meeting with their representative to discuss this, and agree on a reasonable policy that suits you and your financial situation best. The worst thing that can happen is for you to hire such a company and go even deeper into debt due to unreasonable rates and bad service.

Small business credit card debt relief has never been in higher demand. This recession has been rough on everyone but especially on small businesses. If a recent businesses venture left you in at least $10,000 of unsecured debt then you will be eligible for the services of a debt settlement company. A top performing debt settlement company will be able to eliminate 60% of your unsecured debt on average and cases in the 70-90% range are not at all uncommon in this market. Getting this credit card debt relief will negatively affect your credit score but not nearly as bad as bankruptcy. If you are willing to accept a lower credit score to be able to eliminate over 60% of your unsecured debt then a debt settlement could be a wise financial decision.

Getting a debt settlement for small business credit card debt relief is clearly a better option than bankruptcy. Bankruptcy puts a much blacker cloud over your credit history and it usually takes 7 years to fully recover while most people recover from debt settlements in 1-2 years. Because it doesn’t carry all of the negative aspects of bankruptcy, debt settlements have become very popular amongst small businesses trying to get out of debt.

Only 1 of 3 small businesses make in past their first 2 years. This past couple years has been especially rough on the small business sector so if you feel like you are buried in a mountain of debt just know that you are not the only one. There are millions of people just like you whom are also trying to get small businesses credit card debt relief so it would be wise to capitalize on the current economic environment while the conditions are so favorable for debt settlements.

If you need small business credit card debt relief and want to hire a debt settlement company then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company.

There’s a growing interest in how to achieve credit card debt relief using Debt Settlement as an alternative to Credit Counseling and Debt Consolidation Loans to help with debt reduction, to consolidate debt, and avoid Bankruptcy. As a Certified Debt Specialist I’ve talked with thousands of people over the years who are burdened by massive credit card debt, medical bills, or other unsecured debts. Lately, one of the most frequently asked questions has been: “What Is Debt Settlement and How Does It Work?” Debt Settlement (also referred to as debt negotiation) means that your debt is negotiated down to a reduced amount, and your account is settled in full. Historically, settlement amounts within 40 to 60 percent of your outstanding balance are realistic. For example, if your debt is settled for 40%, that means your $20,000 in total unsecured debt is settled for $8,000. Every day I speak with good people all across the U.S. who are financially overwhelmed. Many are unable to make the minimum payments on credit cards or other unsecured debt. Maybe they can’t borrow against their home since property values have plummeted. Maybe they can’t make the payment suggested by a Credit Counseling agency. They may simply want to avoid bankruptcy.

Debt Settlement is one of the most effective debt relief options available to consumers. It’s a great choice if you have more debt than you can pay off, and you’re experiencing a financial hardship that has you falling behind (or just about to fall behind) on your monthly payments. Why would your credit card company, commonly referred to as a creditor, choose to settle debts rather than continuing to charge you interest and late fees month after month? Well, it’s really a matter of dollars and good sense. Creditors know that if you get into a bad financial situation and can’t make your monthly payments, you may decide to declare bankruptcy. In this case they may get nothing! Therefore, given your hardship, rather than risk getting nothing, the creditor is usually very willing to settle for a lower amount. Once you enroll in a Debt Settlement program, the first priority is to effectively minimize creditor’s phone calls. Your total unsecured debt amount is reduced up to 60% while providing just one low monthly program payment. Your monthly payment amount is often as low as half your current combined monthly payments to the same creditors. Many people are struggling to pay off credit card debt, medical bills, or other unsecured debt, and they’re wondering if the Debt Settlement advertisements on TV, radio, or the Internet are for real. There are so many questions and an abundance of mis-information about debt relief.

This led me to create a video series to address the most frequently asked questions I hear from my clients, such as: Can I really get out of debt for a fraction of the cost and pennies on the dollar? Can Debt Settlement help me get out of debt quickly, legally and safely? What are the effects on my credit score, or my income taxes? How do secured/unsecured debts differ, and which can be settled? Do I qualify for enrollment in a Debt Settlement program? These are just a few of the most frequently asked questions. And yes, Debt Settlement really can allow you to pay back less than you owe. I have many clients who have successfully had their unsecured debts negotiated and settled in full, and in the process saved $5,000 to $25,000 to $45,000 or more. Remember, the goal of the credit card companies is to keep you in debt, whereas the goal of a reputable Debt Settlement company is to help you quickly & legally resolve your financial hardship and get you out of debt! If you’re struggling with a huge amount of unsecured debt, it’s important to become informed about your available options. With this knowledge you’ll be in a better position to choose the debt relief option that’s right for you.