Many people use credit cards and there are people that pay them off in full every month, but there are others who charge and make only minimum payments.
If this is the case, you will eventually have credit card balances that could take years to pay off.
And if you do find yourself in this situation, you would not be alone.
There are millions of people that have credit card debt that they cannot pay off in a year or even five years.
In recent years, consumer lending companies passed out credit cards to anyone that could sign their name.
Being credit worthy wasn't high on their list of priorities.
Credit card companies are looking for people that charge and carry balances, because that is how they make their money.
But all that has changed.
With the economy being uncertain, lenders are scared that individuals carrying high credit card balances will not be able to make payments.
This has caused credit card companies to reduce credit limits, close accounts and increase interest rates.
They are calling the shots and you can no longer rely on these lenders for emergencies.
The best way to fight this is to pay off consumer debt and build and emergency fund.
Then you are calling the shots.
There are a few different ways you can begin the debt elimination process.
You can manage a debt repayment plan on your own.
But if you have a lot of debt, it is important that you are able to make payments that are more than the minimum.
If you are looking at several years of repayment, you may want to research some other options.
Debt settlement is a method where the amount of the debt is reduced and it is settled for a lesser amount.
You will probably end up paying 40%-60% of the original amount of charge on the account.
This option will ruin your credit and you may have to pay income tax on the forgive amount, but it will allow you to move forward and begin rebuilding your financial stability.
Consumer credit counseling is an option that can be used if you are able to make a 2% payment on your total consumer account balances.
This is what is most often required by lenders for individuals enrolled in debt management programs.
Your interest rates will be reduced, your fees eliminated and your accounts consolidated.
You will make one electronic payment each month and can be debt free in 3 to 5 years, if you follow the plan as written.
If this is the case, you will eventually have credit card balances that could take years to pay off.
And if you do find yourself in this situation, you would not be alone.
There are millions of people that have credit card debt that they cannot pay off in a year or even five years.
In recent years, consumer lending companies passed out credit cards to anyone that could sign their name.
Being credit worthy wasn't high on their list of priorities.
Credit card companies are looking for people that charge and carry balances, because that is how they make their money.
But all that has changed.
With the economy being uncertain, lenders are scared that individuals carrying high credit card balances will not be able to make payments.
This has caused credit card companies to reduce credit limits, close accounts and increase interest rates.
They are calling the shots and you can no longer rely on these lenders for emergencies.
The best way to fight this is to pay off consumer debt and build and emergency fund.
Then you are calling the shots.
There are a few different ways you can begin the debt elimination process.
You can manage a debt repayment plan on your own.
But if you have a lot of debt, it is important that you are able to make payments that are more than the minimum.
If you are looking at several years of repayment, you may want to research some other options.
Debt settlement is a method where the amount of the debt is reduced and it is settled for a lesser amount.
You will probably end up paying 40%-60% of the original amount of charge on the account.
This option will ruin your credit and you may have to pay income tax on the forgive amount, but it will allow you to move forward and begin rebuilding your financial stability.
Consumer credit counseling is an option that can be used if you are able to make a 2% payment on your total consumer account balances.
This is what is most often required by lenders for individuals enrolled in debt management programs.
Your interest rates will be reduced, your fees eliminated and your accounts consolidated.
You will make one electronic payment each month and can be debt free in 3 to 5 years, if you follow the plan as written.
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