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Will Credit Card Companies Help With Debt
Credit card debt can be stressful. Interest rates can be high, and if you miss or can’t make your full payments, that growing balance can be overwhelming. Enter a group of companies that have promised to reduce or eliminate your credit card debt. (For a fee.) But they did?
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The FTC’s lawsuit against ACRO Services and related companies says no. Instead, the FTC says they operated a deceptive credit card debt relief scheme: claiming they could, for example, clear your credit card debt. The price? You would have to sign up for their program, pay a registration fee (usually in the thousands) – plus monthly fees for “credit monitoring” services.
So what can you expect from the program? Not much, says the FTC. Once registered, it was often difficult to find anyone. If you did, you might get a form letter to dispute your debt – even when the company knew those debts were legit. Even worse, the FTC says, these companies would tell you to stop making payments and stop communicating with your credit card companies. If you followed these directions, you could see increased fees, additional interest, lower credit scores, and, sometimes, lawsuits from creditors.
If you’re looking for ways to pay off your credit cards faster, or get a lower interest rate:
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The pandemic and resulting financial crisis has led to mounting credit card debt for millions of Americans. This video provides insight into consumer debt in the US and how Credit Consolidation has helped Americans find relief.
“Debt relief” refers to any solution that minimizes the burden of paying off credit card debt. The goal is to reduce or eliminate fees and interest charges so you can pay off balances faster. In many cases, you can pay less each month and still get out of debt faster than traditional payments can. Basically, you find a more efficient way to pay back what you owe that works for your finances.
The Debt Forgiveness Book: How To Negotiate With Creditors, Especially Credit Card Companies & The Irs: Lacher, Brian: 9780996617772: Amazon.com: Books
But every financial situation is different, and there are different ways to get into credit card debt:
So how do you know which solution is right for you? The answer is through consumer credit counseling. And Consolidated Credit is here to help you zero in on the right solution for your unique financial situation using these three steps.
Call (844) 276-1544 or fill out the form to request a free confidential evaluation from a certified credit counselor.
Credit counseling is not a debt solution in and of itself. It’s an easy, free way to get the debt solution you need. A certified credit counselor evaluates your debt, credit and budget to find out where you stand so they can help you find the right solution for your needs.
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The credit counselor’s job is to provide you with all the information you need to make an informed decision to get out of debt. The counselor can help you understand how a debt management plan will work through a credit counseling agency. They will also explain how this solution differs from others, such as debt consolidation, debt settlement and bankruptcy.
When they answer all your questions, you can decide to explore other options before choosing a solution. As you research other options, these free resources can help you find the best solution for your needs.
This infographic compares the seven most popular debt relief options based on five key factors, so you can find the best solution for your needs….
If you decide that a debt management program is the best option for you, you can sign up as soon as you’re ready. Then our team will go to work. We will call each of your creditors to work out a key factor that will make it easier for you to get out of debt:
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Once all your creditors have signed up, you start the program. You make one payment to us each month, then we distribute it to your creditors on your behalf. Here’s what you can expect from a debt management program:
Fees are set based on the state you live in and are included in your monthly payment; Average fares are $40 and are capped at $79 nationwide
If you are currently serving or have served in the military, you face particular financial challenges. Consolidated Credit works closely with Southern Command, Army OneSource and the Department of Defense to help Military Service Members and Veterans get the financial assistance they need. We also offer specialized debt assistance for military personnel.
Credit card debt isn’t the only type of debt you can include in a debt management program. You can consolidate almost any type of unsecured debt, not including student loans. This includes debt consolidation loans, unpaid medical bills that have gone to collections, and even some payday loans. If you’re struggling with student loans, you need some form of debt relief.
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Debt consolidation is often the preferred option for debt relief because of the benefits it provides. With consolidation, you pay back everything you need while minimizing interest charges. You can often enjoy lower monthly payments, even as you pay off your debt faster and save thousands. There is also no credit report damage, which you see with other solutions like debt settlement and bankruptcy.
Credit Limit: This option only works if you have good credit; excellent credit is better. Balance transfer credit cards offer 0% APR on balance transfers when you open the account. An excellent credit score means you qualify for the longest 0% APR period possible. Some cards have promotions that last up to 18 or 24 months. That gives you up to two years to pay off your debt interest free.
Be Aware of Fees: Balance transfers always involve transfer fees, even when you have 0% APR. You pay a fee on every balance you transfer – anywhere from $3 to 3 percent.
Be sure to calculate carefully to ensure that you eliminate the balance before the clock runs out. If you can, this will give you the biggest cost savings, as there are no interest charges involved. Otherwise, the interest rate on your debt could be even higher than it was originally.
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Credit limit: Like a balance transfer, a personal debt consolidation loan is only a viable solution for consumers with a good credit score. The higher you score, the lower the interest rate you can qualify for on the loan. An APR of 5% is great, but anything under 10% may be enough to provide the relief you need. If you can’t qualify for a rate below 10%, look for other options.
Basically, you use the money from the loan to pay off your credit card balances and other debts. You can also pay for things like medical bills.
When using this option, you want a loan with a term of five years or less. More than that means your total repayment costs will be too high. Just keep in mind that shorter term means higher
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