Effective Solutions to Reduce Your Credit Debt
Greater disclosure of interest rates and fees are part of the new credit card reform rules. Card holders now have the chance to switch to a lower cost solution to better managing their credit debt.
Further, credit card companies are banned from increasing interest rates in the first year of use, nor are they able to apply interest rate hikes to existing credit debt. Monthly statements are providing more information including the disclosure of how long it will actually take a credit card user to fully pay off the outstanding balance by making minimum payments.
The answer, as many borrowers with credit debt are discovering, can be hard to swallow. Card users are now finding out that they may have to take 10 years and pay a whole lot more in interest to pay off a credit card debt of $3,000. What about those carrying higher balances in the tens of thousands?
While the general impact of the credit card reform is to protect consumers, sub prime borrowers or those with low credit scores are being squeezed out. Although issuers of sub prime credit debt are restricted to charging fees amounting to 50% or less of the credit limit, a $300 fee on a $500 credit debt limit is still pretty taxing. Further, consumers with poor credit are being left with fewer options such as expensive sub prime credit cards, prepaid credit cards, or none at all.
Additionally, spelling the due date out in bold type may help many users with paying on time, however, the credit card reforms do not really help those who are in over their heads and are running behind in their payments.
What options do credit debt burdened consumers have?
Fortunately, there are a number of credit card debt relief options available such as:
- Credit counseling
- Debt consolidation
- Debt management
The best way to find out about these credit debt solutions is to set up an initial consultation with a credit counseling or debt consolidation service. There are profit and non profit debt consolidation services with the latter charging minimal or no fees.
Which Credit Debt Relief program works for you?
Consider streamlining your credit debt into a single consolidated debt if you are:
- unable to handle or meet your minimum payments
- not able to cope with dealing with multiple lenders, different billing dates, and lending terms
- feeling overwhelmed and at a loss
If this describes you, you are most certainly going to get relief from dealing with a single consolidation. You also benefit from improving credit scores as you make the more manageable and lower consolidated credit debt payment monthly.
If you feel left out by the credit card reform, don't. You can have a credit debt relief program customized to suit you and your unique circumstances. Find out how this works by taking advantage of this free consultation with expert credit debt advisors who are committed to finding unique solutions for you. Act now to start on the road to financial strength and stability.
