Hond Financial

Presently it’s been more than a couple of years of this country being stuck in a dreaded economic recession.  Many people have been swearing to fix the program and get America back on track as the economic superpower of the world, but it appears more and more like this may not be happening again for quite a long period of time. 

We have seen a number of unfortunate events that have landed us to such a low point in our financial timeline, starting from the mortgage sector to the automobile industry.  But there is another issue that is seriously effecting US debtors at this point and that is enormous amounts of consumer credit card debt.  We have come to an all time high dealing with credit card debt, and it only continues to get more out of hand. 

Thankfully for overwhelmed Americans there are debt relief programs on the market for debtors who are in search of debt freedom.  The more popular have proven to be consumer credit counseling and credit card debt settlement.  Both have their respective pros and cons and will benefit Americans who are trapped deep in credit card debt. 

By using credit counseling people can look to get their APR’s significantly reduced.  One more plus of the program is that the payment will be a fixed payment for the duration of the program, thus offering consumers the ability to pay down their accounts in a much faster fashion.  Plus it’s merely one monthly payment, which greatly helps assist the problem of making multiple payments to numerous creditors each month. 

There are however downsides with credit counseling these negatives are that if someone slips one month behind they can get booted off of the plan.  Plus the plan might report negatively to the credit bureaus while on the program, which could effect obtaining a mortgage.  Over 75% of people who go into credit counseling plans wind up failing off. 

Then there is credit card debt settlement, this program will seriously assist overwhelmed Americans in credit card debt.  This method is beneficial because the actual balances are decreased not the interest rate.  So the debtor can expect to keep around half of what they currently owe.  Plus this program will aide the debtor out of debt within just a few short years.  During a economic meltdown this is showing to be the most lucrative option for debt relief. 

The negative aspect of debt settlement is that the consumer has to fall behind on the accounts in order for the banks to be willing to negotiate the bill.  So this obviously has a very adverse effect on the consumers credit history, plus the debtor will receive some type of collection activity from the banks, this might be very annoying.

Whichever process is utilized they will both help the debtor to find debt freedom. And during this economic meltdown people really can’t manage to be trapped in credit card debt for decades shelling out outrageous sums of money to the money driven credit card banks.  Once out of debt then consumers can honestly begin to give hand to helping the financial infrastructure get back off the ground and soaring once again.

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