In the United States, it is unfortunate that credit card debt has become a growing trend. Studdies show that the average consumer in the United States carries 3 thousand doallars or more in credit card debt. The sad part about this is that although many consumers know what a credit card is and how to get one, they don’t know what their options are to get out of debt! Here are a few options:
The first option that a consumer should consider when looking to get out of debt is working directly with the lender. Although most credit card companies are huge billion dollar corporations, they are not the evil business that wont work with people as many people will suggest. Many credit card companies have created what is called hardship programs to help consumers who use their cards and find themselves in a financial hardship situation! The first thing that a consumer should do once financial hardship comes about is call the lender and see what they are willing to do to help.
Next, I have been asked quite a bit about using balance transfer credit cards to get out of debt. Does it work? For some people it does and for others it does not. Balance transfer credit cards are a credit card product that allows consumers to transfer high interest rate balances to a new card with a lower interest rate. When looking into this option, it is important to remember that the promotional interest rate does not last forever. Therefore, decisions should be made based on the standard interest rate on the account. Also, if you are looking to balance transfer credit cards as a debt relief option, it is important to remember to look at all fees such as the balance transfer fee associated with the account.
Another way that consumers are hoping to get out of debt lately is by signing up for one of the various debt settlement programs available. Debt settlement is the process of negotiating a lesser amount to be paid than what is owed. However, this option should only be considered as a last option before bankruptcy. This is because debt settlement will detrimentally effect future credit scores and financial stability!
This article is brought to you by Joshua Rodriguez. Joshua Rodriguez is passionate about assisting people when they come across financial hardship situations. Also, he enjoys enlightening people on various financial topics that he feels every consumer should know. To read more articles written by Joshua Rodriguez, just click on his name anywhere in this paragraph and you will be redirected to a new article! If you have any questions regarding the information in his articles, please feel free to email [email protected]Cards.com!