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Falling delinquencies for credit card debt: A hopeful sign?

Created: On November 15, 2010 @ 2:17 pm In

Several major credit card lenders are reporting lower delinquency rates for consumer credit card accounts; this  development is seen as a positive sign for the US economy. Factors influencing this trend include:

  • Economy: As the US economy shows signs of improvement, consumers who’ve returned to work are able to resume making payments on credit card debt.
  • Consumers using credit cards less: The lower your credit card balances, the easier it is to keep your payments current. As concerns about job security and the general economy continue, many consumers are reducing their use of credit cards.
  • Issuers charging off noncollectable accounts: Credit card companies remove bad debt from their active portfolios, a practice that reduces their delinquency rates. Although some creditors are reporting lower charge off rates, overall rates for charge offs remain high when compared to historical data.

Consumer credit counseling and debt consolidation options: Finding the help you need

The first step you’ll want to take when dealing with credit card debt is understanding that you have to help yourself. Being embarrassed or procrastinating in facing debt head-on can lead to more debt along with credit and potential legal problems. Here are some options for dealing with credit card debt:

  • [1] Credit card debt consolidation loans: Your bank or credit union may offer personal loans, sometimes called “signature loans,” with finance charges lower than you’re payng on credit card debt. Compare the annual percentage rates (APR) on your credit card accounts with the APR for unsecured debt consolidation loans.
  • Credit card counseling and debt consolidation plans: [2] Consumer credit counseling services can help with credit card debt management and consolidation. They’ll review your finances, help with establishing a cash-based budget, and negotiate affordable repayment of credit card debt with your creditors. You’ll make scheduled payments to the credit counseling service, and they’ll pay your creditors. These programs can help with avoiding [3] bankruptcy and reduce or eliminate collection efforts by creditors.
  • Online debt consolidation: It’s easy and convenient to seek online debt consolidation options, but please be careful. Don’t respond to unsolicited e-mail offering debt help. Seeking assistance through the National Foundation for Credit Counseling ([4] NFCC) or a [5] HUD approved counseling agency can help you find the help you need while avoiding scams.
  • Avoid holiday spending using credit cards: Recent reports indicate that consumers are spending at higher levels, and this may be due to the approaching holiday season. Put your credit cards away and use cash or your debit card for funding holiday spending.

If you’re having problems with credit card debt, please seek consumer credit counseling and debt consolidation help immediately. The best holiday gift you can give yourself and your family is regaining financial security.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2010/11/15/falling-deliquencies-for-credit-card-debt-a-hopeful-sign/

URLs in this post:
[1] Credit card debt consolidation loans: http://www.debthelp.com/debt-consolidation/loan.html
[2] Consumer credit counseling services: http://www.debthelp.com/debt-consolidation/credit-counseling.html
[3] bankruptcy: http://www.debthelp.com/bankruptcy/options.html
[4] NFCC: http://www.nfcc.org/
[5] HUD approved counseling agency: http://portal.hud.gov/portal/page/portal/HUD/i_want_to/talk_to_a_housing_counselor