Recent statistics are showing the highest rates of delinquencies amongst credit card debts since the late 1980s. The current financial status goes hand in hand with the rising rates of unemployment to complicate the budgets of thousands of Americans; hence, about 10% of credit card holders aren't able to pay back their credit debts. Government credit card debt assistance is increasingly offering solutions to middle and low class debtors to help them settle their delinquent loans.
Federal credit counseling agencies are the main source of assistance channeled to struggling debtors. Many accredited credit counseling agencies offer valuable resources, advice and even funds to eligible credit debtors. Those agencies offer their services free of charge to all American citizens. The Association of Independent Consumer Credit Counseling Agencies (AICCA) is an example of those non-profit organizations.
Credit counseling agencies can help you determine the right solution for your accumulating credit debts. Usually, credit debtors who are no longer capable of paying their credit card bills are usually faced with one of 3 solutions; consolidation, modification or bankruptcy. However, the right solution in a certain situation may be a disaster in another. If your credit counselors advices you to resort to consolidation loans, that means that they would help you get another loan to aid in repaying your credit card debt. The consolidating loans are set to interest rates that are lower than those of the original debt.
Credit counselors may direct struggling credit debtors to modify their credit loans. Modification of a debt is a re-adjustment of the terms of the monthly payments so that they can be afforded by the debtor. Counselors propose on your behalf to your credit card company and request a suitable modification plan to your debt. Loan modification often involves a reduction in the monthly invoices and/or temporary reduction of the interest rates. Testimonials report that eligible credit debtors, especially those with incomes below the federal poverty line, can get federal financial funds to help them pay off their credit debts.
Declaring bankruptcy is sometimes the sole way out of your credit debt problem. Your credit counselor should help you file the legal papers required to declare bankruptcy. Bankruptcy involves selling all the debtor's assets to partially compensate debtors. Government credit card debt assistance provides a valuable pack of tools that are continuously helping credit debtors out through free counseling, advice and even funds for special eligible debtors.
No comments:
Post a Comment