With the unabated rising of prices for the basic commodities, the American people are finding these days quite difficult to meet the primary requirements of the staples even for their day to day lives. The fall in wages, being combined with the continuous narrowing and shrinking of economic opportunities, are making the situation quite grave for the common American people to sustain in their everyday life. As a result, their debt burden and credit card bills are inflating day by day at an alarming rate threatening it to be unmanageable.
As most of the people consider credit card bills and hospital financing to personal credit lines, an easy escape from day to day financial pressures, it may sometimes become alarmingly unmanageable, if you start purchasing more than your financial capacity. Since many purchasing options are there for you available in the market in the form of various kinds of credit cards all of which are not necessarily quite bad, therefore, you can use debt as any reasonable means for enhancing your purchasing power. Whenever you need to deal with numerous competing priorities, it will be definitely quite tough for you to keep your finances on the track. Your problem will only evolve in a multitude if you start expanding alarmingly more than what you earn.
In a dangerous situation like that for your financial management, it is your ardent requirement before anything to recognize the fact that something is going bad regarding your debt. It may be a pressing emergency regarding your credit card issue, or it could be other financial conditions where you need to adopt some urgent plausible measure before it is too late for you. Opt for a Debt Consolidation plan could be your best option in such situation.
Are you reconsidering the option of Minimum Payment Plan?
You often choose the option of the so-called Minimum Payment Plan for paying off your credit card debt as you prefer to take the path of least resistance. As a credit card holder, you need to have a minimum monthly payment by law. All these payments are calculated on the total balance interest rate and some other factors. The minimum monthly payment could be unexpectedly low depending on your income. For example, it could be just $200 per month if you are carrying a balance of $10,000 on a single credit card which is quite manageable for you. But on the other hand, you will have to pay a high rate of interest which is not very comfortable stuff for you. But there is good news for you. The Consumer Protection laws are getting stricter and in favor of the consumer. Now they ask the credit card issuers to disclose the exact tenure of time that the minimum payment plan requires for each customer. Therefore, whenever you get your next credit card bill, you better check the box containing the statement like “if you make only the minimum payment on this balance, you will pay a total of——- dollars and take———– years to pay off your balance.” The figures mentioned for dollars and years could be unexpectedly shocking for you.
Be careful if you are looking for a Debt Consolidation Loan
Debt consolidation loans are widely advertised and well-known options for the consumers who are overburdened with debt. These facilities are available for paying off outstanding unsecured debts, and they can provide some instant relief. Whenever you go for a debt consolidation loan, your existing creditors will be immediately paid off by your lender, and instead, your lender will start billing for the balance. This could be a good option for consumers who are having sizeable credits and debts.
But the interesting facts here to note that the debt consolidation lenders are not very keen to grant loans to the people having poor or mediocre credit. They are quite happy to work with low-risk consumers. Even most of the banks will not grant a debt consolidation loan to the consumer with bad credit. It is definitely not a very good thing for the American consumers who are struggling hard with mounting debts along with poor credit scores. A long-term debt always has a chance of missing a payment that may damage your credit in either way. Therefore, it is very difficult for you to manage a debt consolidation loan for your credit being quite poor in your credit record.
Pondering bankruptcy is also not a good option for you
If you are contemplating on declaring bankruptcy, you must keep it in your mind that it should be considered only as a last resort. You may find that chapter 13 bankruptcy can reduce your mounted load of unsecured debt quite amazingly. But it may also bring many undesirable consequences for you as chapter 7 bankruptcy may impact you quite harshly by grabbing most of your assets that you have garnered in your life over the years.
You should also keep it in your mind that it is quite a public matter and you won’t be able to hide any further once you are involved in the process. As well as, you will run in a high chance of losing your car, home, and many other personal assets.
How can you manage your debts with a debt settlement company?
If you are really tired of receiving the phone calls and emails from your lenders but have no scope of repayment, then the best option is to get in touch with a debt settlement company. Generally, their programs are developed in such a way that it will be able to manage your credit score and protect you from having long-lasting secondary problems. There is numerous debt settlement companies available in the market. But the ones which are highly eminent do not prefer to take any debt settlement cases that you want to settle down. Anyone who qualifies can go for the debt settlement plans. You can directly negotiate with the dedicated team of the debt reduction professionals who are incredibly committed and experienced to ensure you the best guidance and suggestions regarding your credit management.
A settlement company will deal with all these credit card companies, banks, other creditors’ hospitals on behalf of you so that you don’t need to get stuck in the rut of all those hazards. You don’t need to attend all those phone calls or emails or any in-person visit which are a nightmare for you in your present situation.
The settlement cases are usually fixed within 24 to 48 months, and the ultimate objective is a single lump-sum payment that will eliminate all the included debts at a time and forever. Some companies even offer an FDI in order to save your eventual pay-off.