Now it’s been more than a few years of our country being trapped in a dreaded financial recession.  Many people have been swearing to right the ship and get the USA back on track as the economic superpower of the globe, but it looks more and more like this may not be happening again for quite some time. 

There have been a number of unfortunate events that have brought us to this low point in our economic timeline, starting from the mortgage sector to the car industry.  But there is another issue that is vastly hurting US consumers at this point and that is large amounts of consumer credit card debt.  We have reached an all time high concerning credit card debt, and it only continues to get more out of hand. 

Thankfully for overwhelmed consumers there are debt relief programs on the market for people who are in search of debt freedom.  The more popular have proven to be consumer credit counseling and credit card debt settlement.  Both possess their understandable pros and cons and can assist Americans who are ensnaired deep in credit card debt. 

With utilizing credit counseling people can expect to get their interest rates significantly reduced.  Another plus of the structured plan is that the monthly payment will be a fixed payment for the duration of the program, thus offering consumers the ability to pay down their accounts in a much faster amount of time.  Additionally it is merely one monthly payment, which greatly helps assist the issue of shelling out tons of payments to numerous creditors each month. 

There are however downsides with credit counseling these issues are that if the debtor falls one month past due they can get booted off of the plan.  Plus the plan will report negatively to the credit history during the program, which might hurt obtaining a mortgage.  Over 75% of people who sign into credit counseling plans wind up falling off. 

At last there is credit card debt settlement, this plan can seriously help overextended consumers stuck in credit card debt.  This program is nice because the actual balances are reduced not the interest rate.  So the debtor can expect to save around 50% of what they currently owe.  Additionally this plan will aide the consumer out of debt within just a couple of short years.  In the middle of a economic meltdown this is showing to be the most attractive option for credit card debt relief. 

The negative aspect of debt settlement is that the consumer has to slip delinquent on the accounts in order for the banks to be in position to settle the account.  So this obviously has a very negative effect on the debtors credit rating, in addition the debtor will experience some form of collection activity from the collectors, this might be very nerve racking.

Whatever option is utilized they can both assist the consumer in finding debt freedom. And throughout this financial meltdown debtors really cannot manage to be trapped in credit card debt for eons shelling out outrageous sums of money to the stingy credit card banks.  After getting out of credit card debt then people can honestly begin to contribute to helping the financial infrastructure get back off the ground and soaring once again.

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