How to Resolve Credit Card Debt: Expert Strategies That Work
The total credit card debt in the country is about $930 billion. The average APR on credit cards is over 16%. This makes paying off the debt much harder over time. Credit counseling services say 20% of clients are struggling with credit card debt. Programs can help reduce debt by 20% to 50% in 36 to 60 months.
It’s important to understand how credit card debt affects you. Debt accumulation can hurt your financial health. Missing payments can lower your credit score by 100 points or more.
Signs of credit card debt include trouble making payments and getting collection calls. Feeling overwhelmed by debt is another sign. Getting help from credit counseling or debt management programs can be a big step towards improving your financial health.
Professional Credit Card Debt Relief Help Options
People struggling with debt can find help through professional services. Options like credit counseling and debt settlement can offer a way out. Credit counseling helps manage debt and create budgets.
These services can cut monthly payments by 30% on average. Debt settlement companies work with creditors to lower debt amounts. It’s important to know the pros and cons before choosing this path.
About 50% of those seeking debt relief use credit counseling before bankruptcy. Around 60% of credit counseling clients pay off their debts within the plan’s term.
Debt consolidation programs combine debts into one loan with lower interest and payments. This can help achieve financial stability. It’s key to explore all debt relief options, including debt settlement and credit counseling, to find the best fit.
Debt Consolidation Programs
Debt consolidation can cut total payments by 30-50%. Interest rates in these programs average 0-11%. Fees for debt management programs are $40, capped at $79 nationwide.
Credit Counseling Services
Credit counseling offers guidance on managing debt and budgeting. These services help understand financial situations and make informed debt relief choices.
