It’s no secret that over the past few years the economy has been in the tubes. People have been losing jobs, homes and pretty much the will to move on. What makes matters even worse is that personal credit card debt amounts are at an all time high. People ended up relying way too much on their credit cards during this terrible recession and are now trapped in a hole. So which method of debt relief can best serve such people?
Over the years a popular method has been credit counseling. This plan is aimed at a full repayment to the creditors however the benefit is getting lower interest rates and one monthly payment. The one payment can help people with the headache of staying on top of the bills, and also helps to speed up the process of getting out of debt. And getting a lower interest rate can obviously help to save some money. The main issue with this plan however is that many times the payments to get on a plan like this are either the same or more than what people are used to paying for monthly minimum payments, therefore making it unfeasible for many.
Another option that has helped many people out during such rough times is debt settlement. Debt settlement is a partial repayment of the actual balance owed. On many settlement plans people have found themselves saving over half of what they currently owe and will be debt free in a very fast time frame. The only real downside to this plan is that it will have a negative impact on ones credit report. You must fall behind on your minimum payments for the creditors to have any desire to negotiate a settled payout for less.
No matter what you do make sure to do something. Sitting around and hoping the problem will just disappear is not a sound game plan and will only put you and your family into further financial distress. Contact some companies today and find out which plan will work for you.