Debt Settlement: A Solution to Control Credit Card Debt
America's economy is enduring a great deal of stress right now. The housing market is suffering a foreclosure meltdown, unemployment is a huge issue, and the economy in general is pretty much stuck in the mud. Millions of people are living paycheck to paycheck, burying themselves under even more debt just to stay ahead. Except they aren't staying ahead, they are falling behind; making payments on one credit card with another credit card. Put simply, many Americans have amassed an enormous amount of unsecured debt. Credit Card Debt is where most of this debt resonates.
Unfortunately, many Americans will never be able to pay off their unsecured debt because they are only making the minimum monthly payments. Making minimum monthly payments is a sure way to stay in debt for decades to come. For example, if an individual only paid the minimum payments with $7,500 of unsecured debt at 18.75% interest on their credit card, it would take in excess of 20 years to pay this debt off due to compounded interest.
People with credit card debt can be put into a few different categories:
* Pay more than monthly minimum towards their total credit card debt - Usually these individuals are able to manage their debt.
* Pay only required minimum payments - This can lead to being in debt virtually for decades. Paying the minimum amount due usually only covers the monthly interest and a service charge. These individuals think they are managing their credit card debt, but they aren't. In reality they are creating more debt because the compounding of interest applied by the credit card companies creates additional debt on a monthly basis. Even if an individual didn't use their credit card during the previous month the amount of total debt would marginally decrease with each monthly payment, if any at all.
* Struggling to make minimum payments - For these individuals the impact that debt settlement can have on their financial situation is dramatic. If these individuals do not take action their credit card debt is going to affect every other element of their financial security. Debt settlement or bankruptcy may be the only solution that will provide them the relief. Debt settlement with professional help usually results in unsecured debt being reduced by 40% - 50%and interest from each of these liabilities will stop accruing. This form of restructuring debt allows an individual to avoid the consequences of bankruptcy while gaining enough flexibility to pay down their debt over a set period of time, usually between 36- 60 months.
Before an individual's unsecured debt becomes overwhelming it is important to search for a solution such as debt settlement, to avoid being stuck in a never ending cycle of debt liabilities. This solution provides an individual an opportunity to only pay a fraction, usually only 40%-50% percent, of their total unsecured debt. Debt Settlement companies deal with harassing creditors and assist individuals with paying off their debt so they can being to re-establish their financial freedom and rebuild their credit.
Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement
Unfortunately, many Americans will never be able to pay off their unsecured debt because they are only making the minimum monthly payments. Making minimum monthly payments is a sure way to stay in debt for decades to come. For example, if an individual only paid the minimum payments with $7,500 of unsecured debt at 18.75% interest on their credit card, it would take in excess of 20 years to pay this debt off due to compounded interest.
People with credit card debt can be put into a few different categories:
* Pay more than monthly minimum towards their total credit card debt - Usually these individuals are able to manage their debt.
* Pay only required minimum payments - This can lead to being in debt virtually for decades. Paying the minimum amount due usually only covers the monthly interest and a service charge. These individuals think they are managing their credit card debt, but they aren't. In reality they are creating more debt because the compounding of interest applied by the credit card companies creates additional debt on a monthly basis. Even if an individual didn't use their credit card during the previous month the amount of total debt would marginally decrease with each monthly payment, if any at all.
* Struggling to make minimum payments - For these individuals the impact that debt settlement can have on their financial situation is dramatic. If these individuals do not take action their credit card debt is going to affect every other element of their financial security. Debt settlement or bankruptcy may be the only solution that will provide them the relief. Debt settlement with professional help usually results in unsecured debt being reduced by 40% - 50%and interest from each of these liabilities will stop accruing. This form of restructuring debt allows an individual to avoid the consequences of bankruptcy while gaining enough flexibility to pay down their debt over a set period of time, usually between 36- 60 months.
Before an individual's unsecured debt becomes overwhelming it is important to search for a solution such as debt settlement, to avoid being stuck in a never ending cycle of debt liabilities. This solution provides an individual an opportunity to only pay a fraction, usually only 40%-50% percent, of their total unsecured debt. Debt Settlement companies deal with harassing creditors and assist individuals with paying off their debt so they can being to re-establish their financial freedom and rebuild their credit.
Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement
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