Debt Settlement Assistance For Credit Cards–Do Cardholders Benefit From Credit Counseling And Debt Relief Programs?

Numerous debt settlement companies and national debt relief programs are available to assist individuals who may have an overwhelming amount of credit card debt. There have also been nonprofit credit counseling agencies made available to consumers over the years as a way to help them better manage their finances, especially where debt from unsecured credit cards may be concerned.

Past events which caused a slowdown in the economy and a job market which has led to high levels of unemployment or cutbacks in wages have led many cardholders to either acquire a mountain of debt as they tried to stay afloat or have put individuals in a position where they can no longer meet their debt obligations. Understandably, many cardholders would rather be in a position where they can pay down their unsecured credit card debts, but in instances where income has been lost or reduced, there have been cardholders who have simply had to default, which is detrimental to one’s credit history.

However, debt settlement assistance programs for credit card holders and nonprofit credit counseling agencies do still offer services which may assist individuals who are in a difficult financial position at the present time. However, warnings from sources like the FTC caution cardholders about dealing with debt companies without doing research or simply based on a debt assistance company’s claims that they can erase a consumer’s debts for pennies on the dollar.

Fraudulent companies have often charged consumers a fee for their services and offered little or no assistance afterward. While there are new rules in place which have stopped the practice of collecting upfront fees by telemarketing debt relief companies, consumers are still being advised to research any debt settlement agency which may offer to erase their credit card debt.

Obviously, numerous national debt settlement assistance plans, nonprofit credit counseling agencies, and debt relief programs are reputable and have helped consumers, but simply running a Google search or consulting the Better Business Bureau’s website are resources which have been consulted by individuals in need of debt relief assistance and have allowed them to avoid dealing with companies that may not have their best interest in mind.