Presently it has been more than a few years of this nation being stuck in a mind boggling financial decline. Many people have been swearing to fix the program and get America back to being the financial leader of the world, but it seems more and more like this may not be happening again for quite some time.

We have seen a number of misgivings that have lead us to such a low point in our financial history, ranging from the real estate sector to the car industry. But there is another issue that is greatly hurting US consumers at this point and that is enormous amounts of consumer credit card debt. We have reached a record high concerning credit card debt, and it only continues to get more out of hand.

Thankfully for overextended consumers there are debt relief programs available to people who are seeking out debt freedom. The more popular have shown to be consumer credit counseling and credit card debt settlement. Both possess their understandable pros and cons and can benefit US citizens who are swallowed deep in credit card debt.

With utilizing credit counseling debtors can expect to get their APR’s vastly lowered. Another plus of the structured plan is that the payment will be a fixed payment for the entirety of the program, thus allowing them to pay off their bills in a much quicker amount of time. In addition it is just one monthly payment, which significantly helps assist the problem of shelling out multiple payments to tons of creditors every four weeks.

However one must realize there are issues with credit counseling these problems are that if someone falls one month past due they can get kicked off of the plan. Also the plan does report negatively to the credit history while on the program, which might effect getting a home loan. More than 80% of people who go into credit counseling plans end up dropping off.

At last there is credit card debt settlement, this program can seriously help overextended Americans in debt. This program is nice because the original balances are lowered not the interest rate. So the debtor can expect to keep around fifty percent of what they currently are obligated to payback. In addition this program will assist the consumer out of debt within just a few short years. Throughout a recession this is proving to be the most attractive option for debt relief.

The negative aspect of debt settlement is that the debtor must slip past due on the bills in order for the banks to be in position to settle the bill. So this obviously has a very negative effect on the consumers credit history, in addition the debtor will receive some type of collection activity from the collectors, this might be very annoying.

Whatever method is taken they can both assist the consumer in finding debt freedom. And during this financial catastrophe people honestly cannot manage to be stuck in debt for decades shelling out outrageous amounts of cash to the stingy credit card banks. Once out of debt then consumers can really begin to give hand to helping the economy get back off the ground and soaring once again.

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