Credit Cards & Debt Consolidation
Credit card debt is a real issue for older Americans and the problem continue to grow. A recent study shows that low- and middle-income consumers 65 and older carried over $10,235 in average card debt and in a lot of case it is a lot higher. The study also shows that consumers are turning to credit cards for necessities, not luxuries. From 1992 through 2007, the latest data available, older Americans' credit card debt grew faster than the overall population, according to the Employee Benefit Research Institute.
Debt relief without bankruptcy would be the way to go. And that would be a debt consolidation loan that take all your loans, credit cards and put them into one low monthly payment at a lower interest rate and that will get you out of debt without filing bankruptcy. Bankruptcy does not cost you money other than the cost of a bankruptcy but it will put a black mark on your credit. You're virtually not going to be able to obtain any credit in the next seven to ten years to do anything such as buy a house. So bankruptcy is not an option.
The alternative to bankruptcy would be the debt consolidation to navigate out of debt. Debt Consolidation tends to attract lower interest rates as the Credit Counselors work to make this happen. Once you complete the process of consolidation, you may find that your debts will be paid off much faster than before.
Will the Debt Consolidation program have a negative effect on my credit rating?
Absolutely yes…but get over it ok. As with all debt settlement programs, there will be a temporary negative effect on your credit rating. However, following the successful completion of the program, all accounts will be settled and creditors will report the accounts as "settled" or "paid in full" to the credit reporting agencies. Consolidating your debts and bills is done with the only one end goal in mind… to help get back on track to making your monthly payments on time again or paying off debt. Again…Your credit score and ratings will improve. Read more…How Will the Debt Consolidation Program Affect My Credit Report?
Credit Counselor: Strong Moral Compass:
You need the help of a strong Credit Counselor with a strong moral compass. Just as you would seek help from a professional counselor for your mental health…do the same for your financial health. The not profit counselors do not charge. The non-profit receives funding from sources such as the federal government and charities to help the public. Most "For Profit" agencies are subject to state law and can charge no more than the maximum allowed within your state. Reputable agencies will not not charge for educational materials or information about the agency.Make sure you ask the counselor the specific regulations for your state. Also if you are unable to afford the fees of the agency, the agency should be willing to waive the fees if you simply can't afford them. Contact the United States Trustee Program & Bankruptcy for a list of approved credit counseling agencies that can provide pre-bankruptcy counseling.
The National Foundation for Credit Counseling (NFCC), Inc., promotes the national agenda for financially responsible behavior and builds capacity for its Members to deliver the highest quality financial education and counseling services. The NFCC is the nation's largest and longest serving national nonprofit credit counseling network, with more than 100 Member agencies and nearly 850 offices in communities throughout the country. Each year, NFCC Members assist 4 million consumers, helping many to drive down their debt and take control of their finances. The NFCC Member Agencies provide individual, confidential counseling in-person, by phone, or over the Internet. These offices are staffed by professional Certified Consumer Credit Counselors that provide personal assistance to people who need help with stressful financial situations. Allow them to help you make the right decision. Chose one of the options below to receive counseling in the delivery method you prefer. Phone/In-Person (or call 1-800-388-2227)
Seek the help of professionals. Stay away from the
CREDIT REPAIR PREDATORS ..The Federal Trade Commission (FTC) says "Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.
Help Yourself
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Jim Robinson posted on Sunday, March 06, 2011
Tags: Minorities, Debt Consolidation, Consumer Education, Credit Card Debt, Debt Relief
Posted in: Site News, Minorities
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