Is A Debt Reduction Service The Answer To Your Money Problems?

It is much easier for you to eliminate your debt if you know everything about the credit card debt facts

. It comes as no surprise that credit cards are all around us these days considering the current economic climate. Many of them are coming to the forefront all the time.

One of the most amazing discoveries is that approximately five billion applications are distributed to prospective customers with the goal of attracting more customers applying for credit cards. Many applications are declined. An estimated four percent of those who do apply have it approved by the credit provider. These estimates are quite high and can explain why the credit providers companies are making so much money.

A huge amount of consumers experiences some form of credit card debt. Facts published by the credit card experts and debt counsellors indicate that not only are we increasing the number of cards we have but that we are escalating our outstanding debt on those cards. These interesting facts are quite startling.

Within the past year, more than 60% of Americans have been 30 days late in paying their credit card bills. To make matters simple we included a variety of debt facts. Delayed settlement and minimum payment of balance on credit cards can result into bankruptcy.

If you feel that your debts are out of control, you may need to consider a debt reduction service. When selecting the best debt reduction service, make a list of all the agencies promising to help you relive a debt-free life. Contact them one by one. If they are hasty to supply you with a quote on the phone, cancel them out immediately. And, if they give you their rates before advising you how they are able to make life simpler and better for you, hang up.

A good place to initiate the search for a reliable debt reduction service is with friends and family. You should know at least a few people who have had problems with debt and been able to overcome this challenge. References from family and friends are one of the most important factors in finding a good, trustworthy debt reduction service.

Contrary to what most people think or believe, all debt assistance programs can hurt your credit score. Consider this, you are in debt and are not paying as agreed. The debt reduction program is meant only as a management tool. However the moment your debt has been settled, your accounts will show a zero balance and you will begin the process of rebuilding your credit report.

Paying off debt, particularly on your credit cards may seem like a daunting task for many of us. The first action to settle your debt is to calculate the amount of money provided for debt repayment each month. Pay the bare minimum on all cards except for the highest interest rate credit card. The money remaining provided for debt repayment will settle the highest interest card.

When you settle the debt with the highest interest amount repeat the process by paying off the second highest interest amount and continue to pay the minimum for the remaining cards. This cycle continues until all debts are paid off in full. For the ripple effect to work even faster, it is advisable to have the lowest rates for all cards. First, contact all the credit card providers and ask for lower interest rates. Be persistent by asking to speak to supervisors until the rate has been reduced. Even a two percent reduction for the interest rate will make a difference in paying off debt quicker.

by: Julian Mark

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