Credit Card Debt ProblemIt’s no question that Americans have been struggling with credit card debt for many years, but it’s apparent that there has been an increase in credit card debt in the recent years. Finance website Value Penguin, has recently published an article which states that national credit card debt is on the rise, despite the fact that less and less people are using credit cards. “Credit card debt in America has been rising over the last decade. However, despite this, the average percentage of people holding credit card debt has been gradually decreasing. This tells us that the while average credit card debt is increasing, it’s not due to a greater number of individuals spending. Instead, in recent years, more people have been more heavily indebted. In the year 2000, over half of the households in America had credit card debt. By contrast, in 2001, that figure fell to 38% - over 12 percentage points lower. Over this time, average credit card debt rose from $5,048 to $7,697. This means the average American today holds 52% more debt today than they did a decade ago.” According to the article, the American household credit card debt was $10,308 on average, as recent as November of 2015. Handling more than $10,000 of credit card personal debt simply isn't manageable for most families, and the fact that many credit card companies have come back to their pre-recession strategies of offering cards with high interest levels to people with low credit ratings is surely causing numerous debt woes. No matter the circumstance, if you are obligated to pay a tremendous amount of money on one or more credit cards, it's a concern you need to cope with now before your debt becomes unmanageable./ Managing credit card debt makes life harder in every way. For example, purchasing a home and dropping your rental is extremely difficult or sometimes impossible if you're burdened with credit card debt and have a poor credit score. According to the real estate website Home Guides, “Credit cards, and how you use them, are a large part of your overall credit history and score. Lenders not only use your credit score as an indicator of your overall creditworthiness, but they also use your debt to determine your approval as well. Every lender uses a debt-to-income ratio as part of the loan approval process.” Banks and lenders will be hesitant to loan you money to purchase a home if you have significant debt on credit cards. Is Settling Credit Card Debt Possible?Certainly. If you're a person mired in credit card debt, consider working with a professional debt settlement company to work on settling your credit card debts on your behalf. This is how debt settlement works: A skilled debt settlement company uses its leverage with credit card companies to negotiate down your financial debt. Debt settlement companies have great negotiating power with credit card companies as they use their clients’ debts as leverage. There are great benefits to utilizing the expertise of debt settlement companies. Credit card companies prefer securing some payments back to them rather than receiving none at all. How To Settle Credit Card DebtBy contracting a debt settlement company, they can strategically negotiate your credit card debts and come to an agreement on payments. Debt settlement companies have built relationships with credit card companies due to the number of clients they deal with to settle their debts. As debt collectors work on commission, negotiations normally drive a positive course to achieve incentives. It is imperative to work with debt settlement companies as they have experience, the right contacts and skills and expertise to negotiate on your behalf. Simply attempting to undertake this on your own will prove to be a great challenge and will mostly not work. What To Look For In a Debt Settlement CompanyThere are three important factors to look for in a debt settlement company: years of proven experience, positive customer reviews and all the necessary accreditation. Make sure you do your homework and research before choosing a debt settlement company to work with. There are many companies who claim they can help reduce your debt, however, many of these companies lack the proper experience and connections to get the job done. Your debt is a serious issue that needs to be dealt with so it’s important to work with a reputable debt settlement company. Why You Need To Act FastYour credit card debt will become more unmanageable if you don’t take care of it. Credit cards may seem to be an instant financial solution to many, however, keep in mind that this business exists to make money. A 2011 CNN Money article details one woman’s credit card horror story. After a motorcycle accident, the woman received a credit card with 29.9 % APR and a $300 limit, only to receive a letter a few months later explaining that the card’s APR had skyrocketed to 79.9 %. High interest rates are put in place intentionally, a strategy to create increasing high debts as quickly as possible, and unfortunately, is considered legal. If you are one of the struggling Americans in immediate need of help to settle your credit card debts, you need to seek a professional and experienced debt settlement company that can help you negotiate on your behalf and lower your monthly payments now. Sources: CuraDebt Reviews on Consumer Affairs
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