Even as there is talk in the news that we may have reached the bottom economically, thousands of Americans are still struggling with credit card debt and credit card counseling services continue to expand. It has been reported that credit card debt has reached the $1 trillion mark, an amount that is truly beyond comprehension.
Not long ago the people in this country were feeling flush and receiving daily invitations to open up credit card accounts. Advertisements abounded both on TV and in print inviting everyone, everywhere to get another credit card. Now, these very same companies are closing their doors on credit. Only those with perfect credit scores are being given credit cards.
Once money flowed freely and almost anyone could obtain one or more credit cards. Now over a thousand credit card counseling services exist to help over 400,000 consumers find their way out of debt. Things have change drastically.
The government has tried to help get a handle on things by passing legislation that puts limits on what credit card companies can charge in interest rates and instituted notification requirements. But that didn't stop these credit card companies from raising rates quickly before the laws went into effect. Consequently, there will be more bankruptcies and debt loaded consumers struggling to meet higher monthly payments.
And that is where we will really see the credit card counseling services take off in popularity. The credit card companies certainly do not want to see anyone go into default or bankruptcy because they will get nothing. They will however be willing to negotiate with consumers to lower interest rates for those that want to do the right thing and pay off their debt but are truly struggling.
Basically these organizations use their pre-existing relationships with the banks and credit card companies to negotiate lower interest rates. At the same time they offer counseling services to the consumer to educate them so that this situation will not be repeated in the future. By the way, credit counseling and debt consolidation services are terms that are pretty much synonymous and used interchangeably so don't be confused by that.
A visit with a representative of one of these services will help the debtor understand their situation and their options. The representative will suggest options for resolving the debt and contact the lender on their behalf. Information is provided to educate the debtor in their understanding of how they arrived at the place they are in, how to get out of it and how to avoid it in the future.
Credit card counseling services enter into an agreement with the debtor to set up payments on their behalf with the credit card companies. The debtor makes monthly payments to the service that then pays the bank or credit card holder. This usually takes four to five years to complete. All credit cards and lines of credit are cancelled and accounts are closed. This path helps the debtor find an avenue where payment is possible and bankruptcy is avoided. - 29866
Not long ago the people in this country were feeling flush and receiving daily invitations to open up credit card accounts. Advertisements abounded both on TV and in print inviting everyone, everywhere to get another credit card. Now, these very same companies are closing their doors on credit. Only those with perfect credit scores are being given credit cards.
Once money flowed freely and almost anyone could obtain one or more credit cards. Now over a thousand credit card counseling services exist to help over 400,000 consumers find their way out of debt. Things have change drastically.
The government has tried to help get a handle on things by passing legislation that puts limits on what credit card companies can charge in interest rates and instituted notification requirements. But that didn't stop these credit card companies from raising rates quickly before the laws went into effect. Consequently, there will be more bankruptcies and debt loaded consumers struggling to meet higher monthly payments.
And that is where we will really see the credit card counseling services take off in popularity. The credit card companies certainly do not want to see anyone go into default or bankruptcy because they will get nothing. They will however be willing to negotiate with consumers to lower interest rates for those that want to do the right thing and pay off their debt but are truly struggling.
Basically these organizations use their pre-existing relationships with the banks and credit card companies to negotiate lower interest rates. At the same time they offer counseling services to the consumer to educate them so that this situation will not be repeated in the future. By the way, credit counseling and debt consolidation services are terms that are pretty much synonymous and used interchangeably so don't be confused by that.
A visit with a representative of one of these services will help the debtor understand their situation and their options. The representative will suggest options for resolving the debt and contact the lender on their behalf. Information is provided to educate the debtor in their understanding of how they arrived at the place they are in, how to get out of it and how to avoid it in the future.
Credit card counseling services enter into an agreement with the debtor to set up payments on their behalf with the credit card companies. The debtor makes monthly payments to the service that then pays the bank or credit card holder. This usually takes four to five years to complete. All credit cards and lines of credit are cancelled and accounts are closed. This path helps the debtor find an avenue where payment is possible and bankruptcy is avoided. - 29866
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Be sure to visit www.debtconsolidationhelpquote.com now to see how credit card counseling services can help you become debt free.
