Credit Card Debt Counseling - What Is It And Is It Right For Me?
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Over 100,000 people search the web each month looking for credit card debt counseling services!
The use of credit has skyrocketed in the last 50 years. At the ripe old age of 70 I can remember hearing my father-in-law say that the only thing he ever bought on credit was a washing machine for his wife! That was an absolute necessity, and if you knew the story behind that statement you would understand. People back then just didn’t use credit.
Times have really changed since the 1940’s. The latest figures I could find on Google were for 2005. And they are frightening!
If a good credit card debt counseling service does their job they will look at your unique situation, consider all the options and suggest some creative ideas that will help you map out a 3 to 5 year plan to eliminate your credit card debt! Need I say it – don’t contact them unless you are serious about getting out of debt.
A credit card debt counselor contacts your lenders, negotiates a set monthly payment, then arranges for you to make one payment (instead of a payment to each lender) directly to them each month. They then disburse the money to the various credit companies you’ve agreed to pay off. For this they charge a small fee.
Advantage Of A Credit Card Debt Counseling Service:
If you have credit cards that are close to the maximum and/or the creditors have your interest so high you’ll NEVER pay it off then we urge you to speak with a credit card debt counselor today. There’s no fee for talking with them and who knows? Maybe in 3 years we won’t see you on our website!
The use of credit has skyrocketed in the last 50 years. At the ripe old age of 70 I can remember hearing my father-in-law say that the only thing he ever bought on credit was a washing machine for his wife! That was an absolute necessity, and if you knew the story behind that statement you would understand. People back then just didn’t use credit.
Times have really changed since the 1940’s. The latest figures I could find on Google were for 2005. And they are frightening!
- On average, 25% of Americans have “maxed out” their credit cards.
- Americans’ average credit card debt is $8,400 per household.
- Americans pay, on average, an 18.9% interest rate on credit cards. This translates to $83.33 in credit card interest per month.
- 40% of American families spend more than they earn. (Federal Reserve).
- An $8,000 debt, at a rate of 18% interest, will take over 25 years to pay off and cost more than $24,000 in the long run.
If a good credit card debt counseling service does their job they will look at your unique situation, consider all the options and suggest some creative ideas that will help you map out a 3 to 5 year plan to eliminate your credit card debt! Need I say it – don’t contact them unless you are serious about getting out of debt.
A credit card debt counselor contacts your lenders, negotiates a set monthly payment, then arranges for you to make one payment (instead of a payment to each lender) directly to them each month. They then disburse the money to the various credit companies you’ve agreed to pay off. For this they charge a small fee.
Advantage Of A Credit Card Debt Counseling Service:
- High interest is stopped and your creditors will be paid off over three years, instead of 25 or more if you keep going the way you are with minimum payments.
- Once the last payment is paid the creditors will report it to the credit bureaus and show the debt as a $0 balance, which will significantly increase your credit score.
- You must cut up all your credit cards. Also, most creditors might mark the account as collection status until the final payment. However this is a minor inconvenience, since your credit is already in the toilet. It can only get better! Then they will report it as paid off at which time your credit score will improve.
- To see how the lender is reporting your account status you can run your credit report periodically (it's always good to check your credit score every 6 to 12 months anyway).
If you have credit cards that are close to the maximum and/or the creditors have your interest so high you’ll NEVER pay it off then we urge you to speak with a credit card debt counselor today. There’s no fee for talking with them and who knows? Maybe in 3 years we won’t see you on our website!
