Based on recent statistics, consumer debt in America is roughly $2.5 trillion dollars. About 36% of that debt is revolving credit; that is, a line of credit that doesnít require to be paid in full each month, but accumulates interest when it is not. The most common revolving credit debt comes from credit cards. Going off of recent statistics, it would appear that many Americans are in need of Debt Relief from their credit cards.
Credit card debt is easy to gain but hard to lose. Especially in the current economic state of the country, many Americans have had no other option but to turn to credit cards in order to make ends meet. However, high interest rates and late payment penalty fees can quickly get out of hand leaving an individual in a worse financial state than where they started. Fortunately there are Debt Relief options available, including credit counseling; debt settlement or consolidation; payday loans and bankruptcy as a last resort.
For individuals experiencing a difficult time financially, credit counseling services can be extremely helpful. A credit counseling service allows individuals to explore the best debt relief solutions based on their unique situation. Qualified credit counselors look at a personís current financial situation reviewing your debt, income, assets, and expenses then provide options based on the individualís Debt Relief objectives. From there, the credit counselor will help you in taking the next step towards Debt Relief depending on the decided route.
Debt settlement is another way in which many people find Debt Relief. Debt settlement involves negotiating with a creditor to pay off outstanding debt for a percentage of what is owed. In order to utilize debt settlement, an individual must not be current on their bills. Once enrolled with a debt settlement program, he or she will stop paying their creditors and instead start depositing money into a special savings account set up by the debt settlement company. If a borrower files bankruptcy, creditors often lose that money; therefore, many creditors are willing to negotiate with debt settlement companies as to not risk getting no money returned.
Consolidating your debt is another form of Debt Relief. Debt consolidation combines your existing debt into a new loan product and allows you find Debt Relief more quickly by lowering your APR so you can put more money towards your principle. Debt consolidation combines your bills into one affordable payment, which can help avoid overstretching a personís budget while simultaneously improving their credit score. Through a debt consolidation program, you are ensuring timely payments to all your creditors so your credit doesnít get dinged with negative marks. Debt consolidation is a great way to find Debt Relief while you simultaneously fix your credit from past financial mistakes.
Payday loans a great option for those looking for quick Debt Relief. Payday loans provide the necessary funds almost instantaneously so debts can be paid off just as quickly. However, payday loans require the full amount to be paid back by the next pay period which can be difficult for an individual with a large amount of debt. Bankruptcy is the final option when it comes to Debt Relief. Usually individuals seeking Debt Relief file for Chapter 7 Bankruptcy; that is, a liquidation proceeding of a debtorís assets. That money is then distributed to the personís creditors by a judge and then they are discharged, or pardoned, from their remaining debt. However, it is best to avoid filing for bankruptcy if at all possible because it stays on a personís credit report for seven years. While on a credit report, bankruptcy can prevent someone for qualifying for future loans or lines of credit. It can also cause insurance rates to increase, and may even interfere with a job opportunity.
You donít have to suffer under you debt any longer. Find Debt Relief today.