Credit card debt management programs have recently become very popular amongst a debt ridden American public. The average American has 8 credit cards in their wallet and paying them all back can be a real chore if you are not organized. Plus these cards likely have high interest and can take several years to pay off. Credit debt management programs combine all your cards and allow you to pay one monthly payment at a lower interest rate.
These programs are ideal for consumers with several high interest credit cards. Instead of paying all them back separately, credit card debt management programs combine all of the balances in which you will pay one monthly payment and pay back the entire balance over a period of 4-9 years. By lowering the interest rates, consumers typically save significant savings over the payback period. Just a few points in interest can save you thousands of dollars.
There are a couple types of these programs. The first one is credit counseli ng. Credit counseling programs are ideal for consumers that have several high interest credit cards that are able to comfortably meet their minimum payments each month. Credit counseling programs combine all your balances and the payment is typically the sum of all your minimum payments. You must be able to afford the payment comfortably however because after just a few months of missed or late payments you can be kicked out leaving you in worse financial situation that before.
If you are struggling to meet your minimum monthly payments then debt settlement is probably your best option. Debt settlement negotiates the actual balance and typically is able to remove 40-60% of your balance while coming up with a payment plan to pay the rest back. It it the best alternative to bankruptcy but should only be considered ny those with a legitimate financial hardship that have at least $10,000 in unsecured debt.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
Free Debt Advice [http://www.freedebtsettlementadvice.com].
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