Super Fitness Health BlogFinancial Recession Leaves American Citizens Swamped In Credit Card Debt
Now it’s been over a couple of years of our nation being trapped in a horrid economic recession. A lot of financial experts have been promising to right the ship and get America back to being the economic leader of the world, but it looks more and more like this may not be occurring again for quite some time.
There have been a number of unfortunate events that have brought us to such a low point in our economic timeline, ranging from the home loan sector to the automobile industry. But there is something that is seriously 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 only continues to get worse.
The good news for overwhelmed Americans there are debt relief programs on the market for debtors who are trying to find debt freedom. The most workable have shown to be consumer credit counseling and credit card debt settlement. Both have their respective pros and cons and should benefit Americans who are ensnaired deep in credit card debt.
By using credit counseling people can expect to have their APR’s significantly lowered. Another advantage of the program is that the monthly payment will be a fixed payment for the entirety of the program, thus allowing them to pay down their accounts in a much quicker fashion. In addition it is only one monthly payment, which significantly helps aide the issue of shelling out tons of payments to tons of creditors every thirty days.
However one must realize there are downsides with credit counseling these problems are that if someone falls one month delinquent they can get dropped off of the program. Also the plan might report adversely to the credit bureaus while on the program, which might hurt obtaining a mortgage. Over 80% of people who enroll into credit counseling programs end up dropping off.
Then there is credit card debt relief, this program can really assist overwhelmed consumers in credit card debt. This program is nice because the original balances are lowered not the interest rate. So the debtor will look to keep around fifty percent of what they currently owe. In addition this program will aide the debtor out of debt within just a few short years. In the middle of a economic meltdown this is proving to be the most attractive option for debt relief.
The negative aspect of debt settlement is that the debtor has to fall behind on the accounts in order for the banks to be in position to settle the account. So this understandably has a very adverse effect on the debtors credit history, in addition the debtor will experience some type of collection activity from the collectors, this will be extremely nerve racking.
Whichever option is utilized they will both assist the consumer in finding debt freedom. And throughout this financial catastrophe people really cannot afford to be stuck in debt for eons paying outrageous sums of capital to the money driven credit card issuers. After getting out of credit card debt then people can actually begin to give hand to helping the economy get back off the ground and strong once again.
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