Almost every single American has more than one. More than one credit card, that is. And that's precisely why there is more than $2 trillion in unsecured credit cards debt today. As the economy weakened, consumers relied more and more on them, and then the bottom fell out.Although somewhat metaphorical, the bottom did fall out of many people's financial lives. They became unable to meet the monthly payments, and just started hanging on for dear life. Soon, rather than default on mortgages or have utilities shut off, they stopped paying against credit cards debt. With accounts in collection, their lives turned into nightmares of bill collectors, dun notices, and sleepless nights. All because of credit cards debt.Many are turning to different types of debt relief services, and beginning the process of working their way out of a tough situation. Traditionally, debt consolidation was the first thing consumers turned to, and it is still a way of dealing with debt. The drawbacks, however, are considerable. Generally, a consolidation loan is required and that means putting up property as collateral. In these times of uncertain economic factors, a secured loan can become a gamble. Too many missed payments or a default can result in foreclosure and loss of property, and all because of unsecured credit cards debt. This is a pointless place to put one's financial future when other methods to pay off the debt are available. As a part of the big bailout to corporations, some of the money was to be used as an incentive to work with consumers who were holding heavy debt. While no creditor wants to forgive a whole debt, that's what likely to happen if a borrower declares bankruptcy. Rather than risk complete loss, creditors are now negotiating principle balances. If a consumer can pay off a lesser amount, the company sees some return, and in many cases, the bailout money they were given makes up the difference. It isn't a charitable thing they are doing at all. They're still making money.For consumers, heavy credit cards debt can make life miserable, but with a little research, they can find programs that can help. There are many good and reputable debt resolution companies around these days, and by entering into a program, the negotiation with the creditors can be done for them. Having a professional negotiator take over the responsibilities allows a person to get back to work, life, and rebuilding their finances.
