Credit Card Debt Is Here And On The Rise
By Marilu G. Nieto
Let’s talk about consumer credit card debt. Credit cards are an invitation to buy now and pay later. At first glance, this is an excellent idea. Finance what you need or want at the time you need and want it, with the promise to make your monthly payments and or to pay off in one lump sum. This is all well and good, but the problem results when “life gets in the way.”
There are many reasons why a person can be affected by credit card debt especially when it becomes impossible to make the minimum payment. A person can have his or her hours cut back at work resulting in less take home pay or lose their job all together. There can be unexpected medical bills or they really thought they could make the payments. If there are several credit cards and revolving credit cards, it might become necessary to pay the minimum amount due at the end of the 30 day cycle. By paying the minimum, the payment agreement is being kept BUT, there is no reduction in principal, the monthly interest amount is added to the principal and the consumer continues to pay and pay and pay and is still in debt. Does all of this sound familiar?
Nationwide consumer information reports that it is estimated that the average credit card debt per household with credit card debt is $15,799.00.
As household wealth has declined in the downturn of our economy, more American families are facing financial distress due to high debt burdens. In 2007 before the recession began, 14.7% of US families had debt exceeding 40% of their income and this is not taking into account mortgage debt.
The American consumer is drowning in credit card debt. Is there a light at the end of the tunnel? How long will it take for the individual consumer to achieve debt relief?
These are good questions and we need to find the answers.
It is a day to day financial struggle for families in debt. Miss a payment, be late on a payment or stop paying and the nightmare begins.
Collection agencies and creditors including credit card companies and mortgage lenders can legally call requesting payment from 8am to 9pm 7 days a week including holidays. They are not supposed to harrass the person owing the money, but they do. This is their job. Collect what is owed.
Soon you know the phone number they are calling from and the type of mail they send. You don’t answer the phone and the mail goes right to the paper recycle bin without opening. The problem does not go away. Several things can happen and they do.
The problem is not going to go away as a matter of fact, it is at a stail mate or perhaps worse. Our economy has not shown signs of recovery. What is a family to do. In my next article I will include information from my research how we as consumers can take matters in hand and pay off the albatross that is around our neck. Debt.
Marilu Nieto, The Home Biz Diva, an experienced Real Estate Broker helping countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at ConsumerDebtReliefReview.
I WAS SEARCHING FOR FINANCIAL FREEDOM AND I FOUND IT AT BestMoneyMakingOnlineSite