Unfortunately, for the past few decades the United States has been a country driven by debt. Instead of saving up to make a purchase, consumers have been taught to pay for the good life using credit cards. Why are we in this mess and what can be done to get back on track? Let’s take a closer look…
Why are so many of us stuck with credit card debt?
As mentioned, we have grown up in a culture that encourages us to overspend. We are wrongfully taught to value things like clothes and cars, instead of what’s really important in life (your family and faith). In turn, many of have fallen victim… maxing out that American Express Gold Card only to acquire a bunch of junk we don’t really need or want. It’s not long before we rake up massive amounts of credit card debt.
However for many people, the cause of their credit card debt is not from overspending. In times like these, life isn’t always a blue sky. A person may have lost their job or been hit with unexpected medical bills; they turn to their credit cards to cover these costs.
How do we start to get our financial lives back on track?
Of course in an ideal world, the solution would simply be to make more money so we can pay off credit card debt faster. Unfortunately, that’s not always an easy thing for us to do, especially in today’s economy. Often times a person’s debt has spiraled so out of control, they will no longer qualify for even a basic credit card, and certainly not a premium card like an American Express Blue Sky or American Express Gold Card. When your debt has gotten that out of control, it’s usually time to take drastic action.
Nowadays, one way to do that is through credit card debt help. There are a couple ways to go about this. When a person still has good credit or equity built up in their home, they may be able to get a loan with a reasonable interest rate to pay off the credit cards. However for those in dire straits, that usually isn’t an option; due to their maxed out cards and late payments, they may not qualify for traditional lending.
The second way to consolidate the debt is through negotiation with the credit card companies. If a person chooses to hire a debt settlement company to do this, typically they will collect a monthly sum of money from you and hold it in a separate account. Meanwhile they will instruct you to stop making payments. Once you have saved up a certain amount of money in that separate account (this takes a few months) the debt settlement company will call up your credit card companies to try and negotiate a settlement for a reduced amount.
While it’s true that defaulting on your payments during this process isn’t good for your credit score, the odds are that your score was already down the drain if you were previously missing payments. So after the process is completed, you will have to work on re-building your credit from the ground up, but at least you will no longer have that big burden of debt hanging over your shoulders.
Need A Professional Credit Card Debt Help?
If you are not good with projecting a true budget, you should complete our Free and Short Debt Consultation Form and a helpful credit card debt counselor will call you shortly or Call The Toll-free Number above for immediate help- phone operation is open from 7AM to 7PM Pacific Time.