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At this point it’s been over a couple of years of this country being swamped in a dreaded economic decline.  Many economic experts have been promising to right the ship and get America back to being the financial superpower of the world, but it seems more and more like this may not be happening again for quite some time. 

There have been a number of unfortunate events that have landed us to this low point in our financial timeline, starting from the real estate sector to the automobile industry.  However there is another issue that is greatly effecting American debtors at this point and that is great sums of consumer credit card debt.  We have hit a record high concerning credit card debt, and it honestly continues to get worse. 

The good news for overextended debtors there are debt relief programs available to people who are seeking out debt freedom.  The most sensible have shown to be consumer credit counseling and credit card debt settlement.  Both have their respective pros and cons and can benefit US citizens who are trapped deep in credit card debt. 

With utilizing credit counseling consumers can expect to get their APR’s enormously lowered.  Another benefit of the program is that the monthly payment will be a fixed payment for the duration of the program, thus offering consumers the ability to pay off their debts in a much faster amount of time.  In addition it’s only one monthly payment, which vastly helps aide the issue of shelling out tons of payments to tons of creditors every four weeks. 

However one must realize there are issues with credit counseling these problems are that if the debtor goes one month behind they can get kicked off of the plan.  Also the plan can report negatively to the credit bureaus while on the program, which might effect obtaining a mortgage.  Over 75% of people who sign into credit counseling programs end up failing off. 

At last there is credit card debt settlement, this plan can really help overwhelmed Americans trapped in credit card debt.  This method is nice because the actual balances are lowered not the APR.  So the consumer will look to save around half of what they currently owe.  Plus this program will assist the debtor out of debt within just a few short years.  Throughout a recession this is proving to be the most attractive form of credit card debt relief. 

The problem with debt settlement is that the debtor must slip past due on the accounts in order for the creditors to be willing to settle the bill.  So this obviously has a very bad effect on the debtors credit rating, in addition the debtor will experience some type of collection activity from the creditors, this can be very unbearable for some people.

Whatever method is used they will both assist the consumer in finding debt freedom. And during this economic catastrophe debtors honestly can’t manage to be trapped in credit card debt for decades shelling out ridiculous sums of capital to the greedy credit card issuers.  Once out of debt then consumers can honestly begin to contribute to helping the economy get back off the ground and up in the air once again.

Tags: credit card debt, debt reduction, debt relief, debt settlement, Finance