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Ever wonder how some people deep in credit card debt manage to come out on top financially? This is the hypothetical but realistic story of Emily, one person who dug herself out of $10,000 in credit card debt in just a few years.Never a big spender, Emily was shocked when she noticed that her two credit cards had a combined balance of $10,000. What happened?

• Emily took a lower-paying job when the economy went bust at the turn of

  the millennium.

• Hoping her lower income would be temporary, Emily didn't sell her house to

  get one with a lower mortgage. She didn't sell her expensive car to buy a

  cheaper one, since she would get much less than she had paid for it. In

  reality, the thought of driving a less-nice car was painful

• Emily paid only the minimum monthly credit card payment most months. She

  was paying interest, and interest on interest, buying the privilege of having

  the credit card company hold onto her debt another month.

• When one of Emily's credit card balances got within a few hundred dollars

  of the credit limit, her interest rate on the card skyrocketed from 17 to 27%

  .

Loans: Emily’s Salvation?

Emily considered taking out a loan to pay off her credit card debt. She owned a condominium whose property values had increased 40% since she bought it, so she could easily get a good low-interest second mortgage.

But a loan scared Emily: it would mean admitting her debt would not go away soon. Besides, Emily wanted to get rid of her debt, not trade (her unsecured debt for secured debt). Plus, she knew that if she ever couldn't pay the second mortgage, she would lose her house, while failing to pay credit card bills would just mean a ruined credit rating.

For about a year, Emily argued with herself over whether to take out a loan to pay off her credit card. Then catastrophe hit: her beautiful car was totaled in an accident. While shopping for a new car with friends, Emily finally had to admit to herself that buying another car like the one she had had would be financial suicide.

Finding an Answer

Emily cried and cried as soon as she got home from the car dealership that day. It wasn't just that she would have to admit that she wasn't someone who could afford the car she had been driving. When Emily's parents were her age, they had already bought a five-bedroom house; Emily's one-bedroom condominium was already a stretch. If she ever got married to a man with the same financial picture as she had, she wasn't sure they'd be able to afford children. Growing up, her parents had always told her she'd do better than they had. What went wrong?

Emily did not have to think hard about what went wrong. Her father had been able to pay for college with what he earned at summer jobs, and then got a manager-level job straight out of school. Between college and graduate school, Emily had accumulated $70,000 in student debt that she was still slowly paying off. Houses in Emily's town, even adjusting for inflation, cost several times what they did when Emily's parents bought one. Cars had leaped in price about as much. The only thing that hadn't gone up was income.Unable to cope with having less than her parents had, Emily had used her credit cards.

Solving the Problem

Emily knew that since her lack of financial skills had dug her into her rut, she would need outside help to dig herself back out.She had heard about credit counseling services that took large chunks of the payments you made against your debt, so she was careful. She found a counseling agency that was a member of the Better Business Bureau, American Association of Debt Management Organizations and whose credit counselors are certified through the National Institute for Financial Counseling Education. Doing a quick search on the web, Emily verified that these were organizations with real standards and not just empty names.

Here's what Emily got from the credit counseling service:

• Relief. Emily was relieved to learn that her $10,000 credit card debt is

  in fact about average for Americans. The credit counseling agency showed her

  that even if she didn't have the advantages she had–a decent job and home

  equity–she would be able to rid herself of her debt if she just faced up to

  it.

• Surprise. The agency urged her to put money away for a rainy day fund,

  even as her credit card interest mounted. But once she started saving, she

  felt amazing. She realized she had been under enormous stress from always

  being one paycheck away from poverty.

• Understanding. The counselor understood Emily's reluctance to take out a

  loan, and helped her create a budget that would let her pay off her

  consolidated debt within a few years. Besides the car, all Emily had to give

  up were smaller expenses.

• Clarity. With her finances planned, Emily could think much more clearly

  about her financial situation. She figured out how much more money she would

  have to make to have her desired lifestyle, and aggressively pursued a new

  job. Starting fresh with her new coworkers, Emily focused on meeting people

  who were less materialistic–and even met her fiancé.

Though her fiancé has no better financial prospects, Emily's confident they can afford to give their children all the essentials she had, even if in a smaller house.After all, Emily knows that solid finances are just as good a shelter as a roof over your head.

Joel Walsh has created a guide to choosing a credit counseling service: http://debtguru.com

Article Source: http://EzineArticles.com/?expert=Joel_Walsh

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Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.

Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.

The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.

No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.

No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.