Credit card debt is one of the leading causes of stress for most Americans today. Although credit card debt can feel overwhelming at times, there are solutions available, and it is possible to improve your credit as a result. Negotiating credit card debt is one of the best options. It is not an easy or simple process, but with assistance, you may find it is a solution that allows you to improve your monthly budget and find some relief from credit card debt.
A Picture of Credit Card Debt On average, American families have credit card debt that exceeds $10,000 and are juggling at debt from at least three credit cards, according to CreditCards.com. Additionally, the average American consumer has at least 13 credit obligations appearing on their credit report, and at least nine of these are usually credit cards.
According to information from the Justice Department regarding bankruptcy filings, the states with the highest levels of credit card debt include South Carolina with a credit card debt amount of $25,901, Massachusetts with a debt of $25,055, Texas at $24,649, Kansas at $24,037 and Connecticut at $23,943 [http://www.justice.gov/ust/eo/public_affairs/articles/docs/abi_1203.html]. Even states and areas with the lowest amounts of credit card debt when filing bankruptcy included debt levels in the thousands of dollars.
These states include Utah with credit card debt of $12,555, Oregon with debt of $11,966, Kentucky with debt from credit cards of $11,894, Tennessee with credit cards obligations of $11,814, Arkansas with credit card liabilities of $11,690 and Puerto Rico with debt from credit cards at the lowest at $4,835. If you find yourself in familiar territory when you read these statistics, then you are not alone.Many Americans are finding it difficult to merely make their monthly payments on numerous credit cards. Juggling minimal monthly payment amounts and differing payment due dates can cause a great deal of stress, particularly when you add trying to make a house payment, car payment, insurance payments, groceries and utilities.
Negotiating Credit Card Debt
One of the options that may offer relief is credit card debt negotiation. Often, consumers will believe this is something they can accomplish on their own. However, the task of negotiating credit card debt is time consuming and frequently frustrating. In fact, it can be so frustrating that it may be tempting to throw up your arms and walk away from your debt obligations or give up and file for bankruptcy. However, as tempting as these solutions may be, they can have far-reaching consequences that will haunt you for far longer than when working with a professional debt consultant and counselor.
Credit card debt negotiation is often a matter of being able to talk to the right person and having knowledge of what to realistically expect from credit card companies. A professional consumer debt consultant will be able to provide you with an honest assessment of what you can realistically expect from a negotiated credit card debt settlement agreement. They usually will evaluate your current debts and determine which credit card debts would benefit from negotiating a settlement.
The process of negotiating credit card debt is not instantaneous. It may take numerous calls from a credit counselor working on your behalf before they are able to negotiate a settlement agreement that is workable for you. However, often professional credit counselors are able to negotiate a settlement agreement with credit card companies much more effectively than you would be able to accomplish on your own. On average, credit counselors are able to save you as much as 50 percent of your credit card debt obligation.
In most cases, it can take up to 24 to 48 months to complete payment of a credit card debt settlement agreement. The best approach to credit card debt settlement is a debt consolidation agreement. You make a single monthly payment that combines the balance of any credit card settlements to the credit counseling agency. In turn, they make payments to your credit card company on your behalf.
Impact on Your Credit Report
One of the incentives many consumers have in seeking help from a credit counseling organization is that their credit rate has suffered because of missed payments, late payments or simply having far too many credit cards for other creditors to be willing to offer additional credit accounts.
While bankruptcy may be an option, it is not necessarily the best solution since a bankruptcy will stay on your credit report from seven to 10 years. As a result, it can be difficult to qualify for home loans, auto loans or other credit accounts. Additionally, a bankruptcy will influence your ability to be offered the job you want. It will also increase your home and auto insurance rates.
Credit card debt negotiation does have an impact on your credit report. However, it is temporary and certainly falls off your credit report far sooner than a bankruptcy. With regular, steady and timely payments through your settlement agreement, creditors will provide positive information to credit reporting agencies and your credit rate will improve.
If you are looking for solutions to your credit card woes, consider contacting our professional credit counselors. We charge no up-front fees and you only owe us a fee when we provide you with results. So call us today or fill out our form today for your free debt analysis. We can provide you with an honest and unbiased debt analysis and help you get on the road to financial recovery sooner than you realize.