At this point it’s been more than a few years of our country being stuck in a horrid economic decline. A lot of economic experts have been swearing to fix the program and get America back to being the economic superpower of the world, but it appears more and more like this may not be occurring again for quite some time.
There have been a number of unfortunate events that have lead us to this low point in our economic timeline, ranging from the real estate sector to the car industry. But there is something that is seriously effecting American debtors at this point and that is enormous sums of consumer credit card debt. We have hit a record high concerning credit card debt, and it honestly continues to get worse.
Fortunately for overextended Americans there are debt relief programs available to consumers who are in search of debt freedom. The most popular have proven to be consumer credit counseling and credit card debt settlement. Both possess their understandable pros and cons and will benefit consumers who are stuck deep in credit card debt.
With credit counseling people can expect to get their interest rates vastly reduced. One more plus of the structured plan is that the monthly payment will be a fixed payment for the entirety of the program, thus allowing them to pay off their bills in a much quicker amount of time. Plus it’s merely one monthly payment, which significantly helps assist the problem of dishing out tons of payments to various creditors each month.
There are however issues with credit counseling these negatives are that if someone goes one month delinquent they can get booted off of the program. Also the plan can show negatively to the credit bureaus during the program, which might hurt getting a home loan. Over 80% of consumers who enroll into credit counseling programs wind up falling off.
Then there is credit card debt settlement, this program will seriously assist overextended Americans stuck in debt. This program is beneficial because the actual balances are reduced not the interest rate. So the debtor will expect to save around fifty percent of what they currently are obligated to payback. In addition this program will help to have the consumer out of debt within just a few short years. In the middle of a recession this is showing to be the most effective form of debt relief.
The negative aspect of debt settlement is that the consumer must slip delinquent on the debts in order for the creditors to be in position to settle the debt. So this obviously shows an extremely bad effect on the consumers credit history, in addition the debtor will receive some kind of collection activity from the collectors, this will be very nerve racking.
Whichever method is used they can both help the debtor to find debt freedom. And during this financial catastrophe consumers seriously cannot afford to be stuck in debt for eons paying gigantic sums of capital to the money driven credit card issuers. After getting out of credit card debt then Americans can really start to contribute to helping the economy get back off the ground and healthy once again.