CONSUMER CREDIT CARD DEBT, WHAT A NIGHTMARE
Let's talk about consumer credit card debt. They are an invitation to buy now and pay later. At first glance, this is an excellent idea. Finance what you need or want at the time with the promise to make your monthly payments and or to pay off in one lump sum. A problem results when "life gets in the way."
A person can have hours cut back at work resulting in less take home pay or lose their job all together. There can be unexpected medical bills,car payments, mortgage payments and it all adds up. If you have several cards including revolving credit cards, you might have to opt for paying the minimum and the principal will go down ever so slightly and the result being that the consumer pays and pays and pays, and is still in debt. Does all of this sound familiar?
Nationwide consumer information reports that it is estimated that the average credit card debt per household with credit card debt is $15,799.00.
As household wealth has declined in the downturn of our economy more American families are facing financial distress due to high debt burdens. In 2007 before the recession began, 14.7% of US families had debt exceeding 40% of their income and this is not taking into account mortgage debt.
The American consumer is drowning in credit card debt. Is there a light at the end of the tunnel? How long will it take for the individual consumer to achieve debt relief?
These are good questions and we need to find the answers.
It is a nightmare for families in debt.
Miss a payment, be late on a payment or stop paying and the nightmare begins.
Collection agencies and creditors including mortgage lenders can legally call requesting payment from 8am to 9pm 7 days a week including holidays. They are not supposed to harrass the person owing the money, but they do. This is their job. Collect what is owed.
Soon you know the phone number they are calling from and the type of mail they send. You don't answer the phone and the mail goes right to the paper recycle bin without opening. The problem does not go away. Several things can happen and they do.
The consumer is in need of debt relief. In my next article I will write about some solutions to help with credit card debt.
A person can have hours cut back at work resulting in less take home pay or lose their job all together. There can be unexpected medical bills,car payments, mortgage payments and it all adds up. If you have several cards including revolving credit cards, you might have to opt for paying the minimum and the principal will go down ever so slightly and the result being that the consumer pays and pays and pays, and is still in debt. Does all of this sound familiar?
Nationwide consumer information reports that it is estimated that the average credit card debt per household with credit card debt is $15,799.00.
As household wealth has declined in the downturn of our economy more American families are facing financial distress due to high debt burdens. In 2007 before the recession began, 14.7% of US families had debt exceeding 40% of their income and this is not taking into account mortgage debt.
The American consumer is drowning in credit card debt. Is there a light at the end of the tunnel? How long will it take for the individual consumer to achieve debt relief?
These are good questions and we need to find the answers.
It is a nightmare for families in debt.
Miss a payment, be late on a payment or stop paying and the nightmare begins.
Collection agencies and creditors including mortgage lenders can legally call requesting payment from 8am to 9pm 7 days a week including holidays. They are not supposed to harrass the person owing the money, but they do. This is their job. Collect what is owed.
Soon you know the phone number they are calling from and the type of mail they send. You don't answer the phone and the mail goes right to the paper recycle bin without opening. The problem does not go away. Several things can happen and they do.
The consumer is in need of debt relief. In my next article I will write about some solutions to help with credit card debt.
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