According to industry experts, credit card debt is one of the leading financial problems that many Americans are facing today. The economic crisis that began last year has resulted in massive unemployment, rising interest rates and an ongoing economic instability which the U.S. government is still trying to contain. All of these things mean only one thing to the common American, they are now struggling to make ends meet and every “cash drain” has to be plugged. One of the biggest drain that most Americans have to deal with is credit card debt.
To put it bluntly, there is really only two ways that you can deal with credit card debt. You can pay it all up or you can declare bankruptcy. Of the two, the easiest way out would be declaring bankruptcy. It is also the most ruinous. True, declaring bankruptcy can lower your payment rates. It might even absolve you of it entirely. However, in the long run, it can hurt more than it can help. For instance, if you declare bankruptcy, you've tarnished your credit record permanently. So, every time you try to take out a loan, credit card companies will check your records and, more likely than not, you will get turned down.
Obviously, the best way to deal with credit card debt is to pay it. Of course, that is easier said than done, especially with the current economy. Dealing with it on your own can be daunting and confusing, to say the least. With the amount of fine print that credit companies put in their agreement forms, you can go blind just looking for how much your monthly interest rates should be. A good idea for those with credit card debt would be to go for credit counseling.
The people in credit counseling are people who have dedicated eight hours a day, five days a week to the task that everyone else is relegating to a few minutes every time the budget comes up, understanding the credit industry. Thus, when you go to them for help regarding your credit card debt, you can be sure that they know several solutions that can ease your credit card burden. Of course they won't make your debt disappear. They will just make it easier to handle so that you won't be losing three quarters of your monthly take home pay to credit card debt payments.
Credit counseling agencies will investigate every minute detail of your finances to find out how to help you. They will be looking into your credit history and it really helps if you have a good one. They will consider your monthly take home pay and compare it against your monthly debt payments. Depending on how you rate, they can negotiate a lower monthly rate for you with your credit company.