In the early parts of July there were some reports that stated certain consumers are still suffering from delinquency on their credit cards as there was an increase in the number of past due credit card bills that have been seen for consumers throughout the country. While it has been stated that these credit card payment issues are not leading to severe cases where consumers are defaulting entirely on their debts, it stands as an example of continued assistance that is needed in the lives of various consumers when it comes to not only meeting credit card payments but other debts as well.
While some consumers may have missed a credit card payment and are only 30 days behind on their bills, there are others who are still in a position where potential missed payments on other debts could arise or have already arisen to an extent where they are delinquent and are facing further financial setbacks as a result. What consumers need to understand is that there are options available to help them find affordability when it comes to paying certain debts, but action must be taken quickly before these men and women begin missing payments and creating an effect where other areas of their financial life may suffer as a result. If consumers miss a certain amount of payments on their credit card, provisions in the CARD Act do not prevent lenders from increasing an interest rate on current lines of credit for this troubled consumer.
Also, trouble making certain payments often points to financial problems that can bleed into other areas, such as mortgage payments, and it has been well established that homeowners are still fighting in the battle in their personal life when it comes to finding a stable ground from which they can continue meeting mortgage payment obligations. However, some financial advisers have suggested that, for consumers who are in a dire situation, outside help may be available and beneficial particularly in cases where a consumer cannot budget or change their financial lifestyle to meet their repayment requirements.
Some consumers may be able to speak with a credit counseling agency and simply revamp their personal financial practices as a way to help them avoid missed payments on debts like their credit card, but others are facing financial setbacks due to unemployment or other problems like health issues which have led to financial distress. Debt management options have been one route that consumers can take in these cases, but there are also other debt relief plans that may be available directly from one’s creditor if financial distress related to unemployment or medical expenses can be shown.
A debt management option has the potential to negotiate a consumer’s debts to get lower monthly payments on credit card debt or other obligations, and this can bring a great deal of relief for consumers who are struggling, but in some cases consumers have been able to simply contact their credit card company or another creditor directly, explain their situation, and qualify for hardship assistance directly from their lender.
Options like debt management will require research so that a consumer will find the best company to work with, meaning one that is accredited in reputable, but no matter what debt relief options a consumer begins to use or researches, time is often of the essence when it comes to debts like credit cards or a mortgage, as the longer a consumer waits to address financial problems, the more difficult it may be to find assistance and, obviously, they might find themselves in a worse financial position as a result of delaying too long.