Credit Card Debt, Real Relief Options

The financial recession that we have been dealing with for quite some time has several

consumers looking at their credit card bills and banging their heads on the wall. Unfortunately, as the unemployment rate steadily continues to grow, so does the average amount of debt in the American household. Thousands of people have researched options and felt as though none of the options would work for their particular situation. The good news is, chances are you have not seen all of the options. There is usually something out there for consumers that can help them alleviate the thought of bankruptcy.

The first debt relief option that consumers have is working with the credit card companies directly. Fortunately, thousands of large credit card issuers have implemented financial hardship programs to assist consumers in need. To qualify for these programs, people have to be facing a financial hardship but, the hardship must not leave them underwater at the end of each month. Generally, people who pay all of their bills and only have between $1 and $150 left at the end of the month will qualify for financial hardship programs directly through the bank. Although, people must close their credit cards to take part in these programs, the reduction of interest and monthly payment may be well worth the account closure for those dealing with true financial hardships.

Once people try working with the banks directly and still need a higher level of relief, it is time to look into more productive options. Although financial hardship programs can save Americans thousands, it is understood that this is just not enough for some people. The next step is to start looking into debt consolidation. Debt consolidation is the process of rolling all debt into one loan with a much lower interest rate and longer term of payoff. Although several debt consolidation programs do harm consumer FICO scores, those who truly need debt consolidation have probably noticed that their credit is already bad.

Debt consolidation does indeed help thousands of consumers each year. However, some people need even a higher degree of relief. This next option is one that I only advice for consideration as a final resort before bankruptcy. This option is called charge card debt settlement. Credit card debt settlement companies will help consumers with negotiation of not only the interest rate associated with their debts but also the total balance of the debts. Although these debt settlement programs can save Americans exponential amounts of cash, it is also important to remember the detrimental affects that debt settlement will have on consumer credit ratings.

Unfortunately, if debt settlement proves not to provide the level of relief that people need, these people will most likely need to file for bankruptcy at some point in time. However, remember that although bankruptcy does have a severe impact on consumer FICO scores, it is nothing to be ashamed of these days. For the consumers that have found themselves in this situation, it's time to wipe the slate clean and start over. Only this time, please remember to be more careful with your finances!

by: SEO Daddy-O

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