Credit card bills and debts are the most common threats to the economy of the country as well as to the financial status of an individual. According to a recent statistics from the US government, credit card debt delinquencies increase at about 5 percent every year with 2009 being the dubbed “year of credit card debts.” Many Americans are having problems when it comes to handling their money since they are not aware of the debt strategies that they can make use of.
If you are one of those aiming to reduce credit card debt, here are 3 programs that the US government recommends:
1. Credit card debt consolidation – This is by far one of the most effective means for you to finally get rid of your debts once and for all. Debt consolidation involves the use of other banking procedures such as loan application or balance transfers in order for you to be able to make and meet the monthly payments that you need to make. Debtor compliance in terms of paying debts every month is the main suspect on why a lot of people are in troubles with their credit card providers. You can enjoy certain deals and perhaps even discounts if you are going to avail of consolidation programs since a lot of financial institutions offer them. There are also some creditors that offer these programs if the client requested or asked about them.
2. Bank supported credit relief – If this is the first time that you encounter this term, bank supported credit relief is similar with debt settling wherein you negotiate with your creditors to give you lowered monthly minimum payments but payable in longer periods of time. For example, you have a particular amount of debt that you need to pay in 12 months. You can enjoy lowered payments if you agree to pay it say for 18 to 24 months.
3. Broader credit consolidation plans – This is similar with debt consolidation, the only difference is that this particular plan is concentrated in transferring credit card debt to a secured mortgage. Instead of paying your creditors every month, you direct your payment to the banking facility that lent you the money.
There are a whole lot of debt strategies that you can make use of. All you can do is to properly research and do not be afraid to ask your creditors. Yes, the people who owe money from so that they can provide you with first-hand information about the debt reduction methods that you can do.