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Credit Card Debt: Had Enough?

Created: On October 27, 2009 @ 10:06 pm In

U.S. consumers are battling record unemployment rates, rising health care costs, and falling home values. And guess what? Meanwhile, the credit card companies stand at the ready, raising interest rates, imposing fees, and threatening to impose new fees on those who act responsibly and pay their balances in full each month.

Credit Card Debt: Is it Worth It? 

Today consumers use credit cards for everything from charging cat food to buying trips around the world. We book hotels, buy flat screen TVs, and charge airline tickets with credit cards. In return, the credit card companies provide convenience along with certain purchase protections. Credit cards are definitely a convenience, but convenience turns to consternation when you carry revolving credit card debt. Finance charges are added to your balance. Minimum payments  are so small it can take decades to pay off your balances. Your balances rocket skyward while your bank balance free-falls. You pay and pay. And you owe.

Credit Counseling and Debt Consolidation: Finding Your Way Free

If you’ve got credit spending under control, congratulations. But control doesn’t mean waking up in the middle of the night wondering if your last purchase at the TV shopping marathon put your ultra titanium credit card over the limit. If you’re stressing out with credit card debt, it’s time to get help.

Consumer Credit Counseling Services Can Help

These services help debtors learn how to manage their finances on a cash basis while paying off credit card debt with an affordable repayment plan. Depending on how much you owe, and how much you can pay, a credit counseling service arranges repayment terms with all of your creditors, and you make one scheduled payment to your credit counseling service. Your credit counseling service distributes payments to your creditors, so you also receive the benefit of  low cost debt consolidation.

Professional [1] credit counseling services can help you eliminate debt for a relatively low cost, especially when compared to the finance charges typically accruing on credit card debt. The downside to credit counseling is minimal, but you need to agree to certain requirements and understand what credit counseling services cannot do.

  • Say good bye to your credit cards: Consumer credit counseling services negotiate affordable debt repayment for their clients, but credit card companies require that consumers repaying through such arrangements close all of their credit cards. That Visa stashed in the sock drawer? Toast. You are also required to agree that you won’t open any new credit accounts for the duration of your repayment plan.
  • No “instant credit repair”:  Credit counseling services cannot erase prior delinquencies from your [2] credit reports, but by repaying debt over time, and lowering your debt levels, your credit should improve.
  • No guarantees: Credit counseling services can help you get out of debt, but they cannot guarantee that you can qualify for future credit.

Gaining freedom from credit card debt is worth the work and time it takes. Contact a professional credit counseling service and start building financial security.

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URL to article: http://www.debthelp.com/blog/2009/10/27/credit-card-debt-had-enough/

URLs in this post:
[1] credit counseling services: http://wwww.nfcc.org
[2] credit reports: http://www.annualcreditreport.com