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Financial Catastrophe Leaves American Citizens Trapped In Credit Card Debt

Filed under: Uncategorized — emitaliablog
Posted on July 11, 2010 @ 1:57 pm
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Now it’s been more than a few years of our nation being trapped in a terrible economic decline.  A lot of economic analysts have been swearing to right the ship and get the USA back to being the financial superpower of the globe, but it seems more and more like this may not be happening again for quite a long period of time. 

There have been a number of misgivings that have lead us to this low point in our financial timeline, starting from the mortgage sector to the car industry.  However there is one more problem that is negatively effecting American debtors at this point and that is great sums of consumer credit card debt.  We have reached a record high concerning credit card debt, and it honestly continues to get more out of hand. 

Fortunately for overextended Americans there are debt relief programs on the market for people who are trying to find debt freedom.  The more sensible have proven to be consumer credit counseling and credit card debt settlement.  Both have their understandable pros and cons and should aide consumers who are ensnaired deep in credit card debt. 

With utilizing credit counseling debtors can look to have their interest rates vastly lowered.  One more benefit of the program is that the payment will be a fixed payment for the duration of the program, thus offering consumers the ability to pay down their bills in a much faster amount of time.  Plus it’s only one monthly payment, which vastly helps aide the issue of dishing out multiple payments to numerous creditors every thirty days. 

There are however problems with credit counseling these negatives are that if the debtor slips one month behind they can get kicked off of the plan.  Plus the program will report negatively to the credit bureaus during the program, which could effect obtaining a home loan.  More than 80% of consumers who enroll into credit counseling programs end up dropping off. 

Then there is credit card debt settlement, this plan can seriously help overwhelmed Americans trapped in credit card debt.  This program is helpful because the original balances are decreased not the APR.  So the consumer should look to save around 50% of what they currently owe.  Additionally this program will assist the consumer out of debt within just a couple of short years.  During a recession this is showing to be the most lucrative form of debt relief

The downside to debt settlement is that the consumer must slip behind on the bills in order for the collectors to be willing to settle the account.  So this understandably has an extremely adverse effect on the debtors credit history, plus the debtor will receive some form of collection activity from the collectors, this can be very annoying.

Whichever process is utilized they will both assist the consumer in finding debt freedom. And in the middle of this financial meltdown consumers honestly can’t afford to be stuck in debt for ages shelling out large amounts of capital to the stingy credit card issuers.  Once out of credit card debt then Americans can really start to give hand to helping the economy get back off the ground and healthy once again.

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