Recently it was indicated that cardholders who may have an excessive amount of credit card debt are in a position to take advantage of counseling which could help them gain control over their credit card debt, begin the process of erasing what they owe, and potentially avoid high costs related to credit card interest rates when cardholders keep a balance on their card. Yet, here in May there is some concern on the part of a counseling agencies that consumers may not be using these resources to their advantage, as even the provisions passed through the CARD Act state that card issuers must provide contact information for consumers that can lead them to these credit counseling agencies.
As financial hardships continue for many consumers, in the form of housing troubles and employment issues, there are those who feel that consumers who combat their debt from credit cards or other sources in a timely manner will find that they can more easily overcome troubles which may, in some cases, do damage to their credit if allowed to get out of control. It’s common sense that if a consumer has a high amount of credit card debt and has been facing trouble related to their job, may face difficulties in relation to their mortgage payment or could see cutbacks in their income, erasing debt as quickly as possible will be advantageous and, in some cases, this can be accomplished with nonprofit credit counseling.
Consumers who are given resources on their credit card statement to contact these credit counseling agencies should also research online and compare credit counseling services as there are some counseling agencies that may provide a better experience and more in-depth assistance to consumers facing a high amount of credit card debt along with troubles in other areas of their life. While there have been some questionable credit counseling agencies arise over the past years, thanks mostly to the recession and the need of cardholders to find debt relief assistance, there are organizations that are nationally accredited and will be able to help many cardholders find solutions to their credit card debt even if their income has taken a hit.
There are, though, some of these accredited organizations that may offer more one-on-one services than others, and this would obviously be optimal, as there are credit counseling companies that do simply offer a generic credit counseling package, which may not be as helpful to consumers facing particular hardships, like a combination of reduced wages and income, high credit card debt, or problems with their mortgage. One concern that some counseling organizations have is that with all of the consumers who have been given access to these nonprofit credit counseling agencies through the CARD Act, there have been relatively small numbers of these men and women seeking help, which could point to the fact that some consumers are finding they can handle credit card debt on their own, but still, officials want consumers to be aware of these resources and prompt them to take advantage of help well before their situation becomes too difficult to repair.