At this point it has been over a few years of our nation being swamped in a terrible economic recession. A lot of financial experts have been swearing to right the ship and get the US back to being the economic superpower of the globe, but it looks more and more like this may not be happening again for quite some time.

There have been a number of unfortunate events that have lead us to such a low point in our economic timeline, starting from the mortgage sector to the auto industry. But there is something that is negatively hurting US consumers at this point and that is enormous sums of consumer credit card debt. We have reached a record high concerning credit card debt, and it honestly continues to get worse.

Fortunately for overwhelmed consumers there are debt relief programs on the market for consumers who are trying to find debt freedom. The more popular have shown to be consumer credit counseling and credit card debt settlement. Both have their respective pros and cons and can assist consumers who are stuck deep in credit card debt.

By using credit counseling consumers can look to have their APR’s significantly reduced. One more plus of the structured plan is that the payment will be a fixed payment for the entirety of the program, thus offering consumers the ability to pay off their debts in a much quicker fashion. Additionally it is just one monthly payment, which significantly helps assist the problem of making multiple payments to tons of creditors every month.

However one must realize there are problems with credit counseling these problems are that if the debtor goes one month delinquent they can get booted off of the program. Plus the program can show negatively to the credit history while on the program, which might effect getting a mortgage. Over 70% of consumers who enroll into credit counseling plans wind up dropping off.

Then there is credit card debt settlement, this plan will really help overwhelmed Americans stuck in credit card debt. This plan is helpful because the actual balances are lowered not the interest rate. So the consumer can look to save around 50% of what they currently owe. Additionally this plan will aide the consumer out of debt within just a few short years. During a economic meltdown this is showing to be the most lucrative method of debt relief.

The downside to debt settlement is that the consumer has to fall delinquent on the accounts in order for the collectors to be in position to settle the debt. So this understandably has an extremely bad effect on the debtors credit history, plus the debtor will go through some kind of collection activity from the banks, this will be very annoying.

Whichever option is used they will both help the debtor to find debt freedom. And in the middle of this economic meltdown consumers honestly can’t manage to be trapped in credit card debt for decades shelling out large amounts of cash to the blood sucking credit card banks. Once out of credit card debt then people can actually start to contribute to helping the economy get back off the ground and strong once again.

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