Has Credit Card Debt Making You Toss And Turn At Night?
The entire world knows this last 365 days has been one of the ugliest in terms of financial problems. This recession has placed hundreds of thousands of US residents into very stressful financial positions. It looks like virtually everything that could go wrong did go wrong. We are witnessing record numbers in foreclosures, the people are losing jobs left and right, and to top it off unsecured credit card debt has reached an all time high. These problems are leaving consumers to search for a trust worthy method of debt relief to help them get back up on their feet. There are two popular forms of debt relief that individuals have been utilizing, and they are debt settlement and credit counseling.
Consumer credit counseling (CCCS) is a program offered and run by the credit card companies. The benefits of employing a company like this are to have your debts lumped into one payment a month and to have the interest rate lowered. This is not a true system of credit card debt reduction because the balance itself is not actually reduced, just the APR. The downsides to this plan are that the payments often times aren’t much less than the payments a consumer was paying out to begin with. Plus if you go last on just a single payment you will forfeit the perks of the plan and get the boot.
Debt settlement is a much different method of credit card debt reduction. With a debt settlement plan the advantages are saving income and valuable time. In most situations the debtor will save in excess of fifty percent of what their balance previously was and find themselves out of debt in just a few years. With that being said there is a drawback to credit card debt settlement this being the consumer must go delinquent on the monthly payments for the creditors to be willing to negotiate a settlement. So naturally your credit history will take a hit in the beginning of this program. But once the settlements start going through the credit history will rebound and go back up.
Both of the above discussed plans are not for everyone. Which plan is better suited to you depends on your particular financial predicament. I recommend looking into both methods and research which can help you more in your situation.
Some Thoughts On How To Reduce Your Credit Card Debt
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