Credit card debt repayment assistance for consumers who are struggling financially is a concern that many individuals have as there are indications that more lenders are beginning to pursue cardholders for funds that may have been lost as a result of consumers becoming delinquent on their credit card debt. Understandably, consumers who have had trouble financially, particularly in the realm of credit cards, have missed payments or simply defaulted entirely on these unsecured debts, and as a result, are not only seeing damage done to their credit score but are in a position where these credit card companies may be pursuing them through legal action.
According to a recent report on CreditCards.com, consumers are seeing more lawsuits in various areas across the nation as more consumers are defaulting as a result of economic downturns, financial distress, unemployment, or simply spending beyond their means to repay. While there are various reasons that some individuals have missed credit card payments or defaulted, there are indications, according to the article, that consumers are being pursued by buyers of uncollected credit card debts, and in some instances, these companies that bought debt from the original creditor for a small amount in compared to the original are looking to recoup the full amount from the cardholder.
However, consumers who are struggling under the weight of credit card debt and run the risk of defaulting do have options that may be able to offer them repayment assistance and credit card debt relief so that they can avoid defaulting on these unsecured credit card debts and, in certain cases, avoid any legal action for nonpayment that may have resulted in their inability to pay off what they owe. Individuals who are struggling with their credit card debts have multiple options that may help them prevent further damage to their credit or even being pursued by debt collectors as a result of their repayment issues.
Consumers are usually prompted to, in the early stages of credit card debt, either change their financial habits, form a household budget, and make sacrifices that will put them in position where they can simply repay what they owe on their credit cards without acquiring more debt or spending beyond their means. Yet, consumers may also simply contact their credit card lender directly to ask for either more affordable repayments, interest rate reductions, or a forbearance for a set period time in the hopes of a consumer getting back on their feet financially.
There are also options that may be available through nonprofit credit counseling agencies that can assist consumers who are having a difficult time getting out of debt on their own as these resources can help by analyzing a consumer’s income, looking at their debt, and providing an outside viewpoint on a debt situation that may likely lead to solutions in terms of affordable repayment options. However, more extreme cases may call for a consumer to either enter into a debt management plan, which can lower the amount a consumer repays each month on their credit card debts through a plan negotiated by counseling agency or some may have to turn to a debt settlement program, which can do damage to a consumer’s credit score but will, obviously, potentially offer the opportunity to avoid defaulting outright and being pursued by creditors. While consumers need to address their issues early and avoid jumping to extremes like debt settlement in the beginning, there are options outside of simply defaulting on debt and facing further problems that may result from creditors attempting to recoup losses, so cardholders who are having issues with their credit card debts are often in a better position if they take advantage of these options as soon as problems arise.