Delinquent Credit Card Repayment Programs Offering Debt Relief–Consumers Seeing Lower Card Delinquencies

Recently, there was some good news released related to credit card delinquencies which may be a positive sign for cardholders who have been past-due on their credit card obligations and, as a result, may have been in need of repayment programs that will offer them debt relief so that they can avoid further damage in their financial life related to their credit cards. Obviously, some states are faring worse than others when it comes to the amount of credit card debt that has been seen, but a recent report released by TransUnion stated that the national credit card delinquency rate actually decreased at the end of the second quarter this year, which may be somewhat of a surprise to some particularly due to the fact that levels of unemployment remained high and have necessitated that some cardholders rely on their card as a way to get through these tough times.

This is the mistake that some cardholders have made when they are seeing a reduction in their income or may be unemployed due to the fact that some men and women may feel that if they charge on credit to meet basic necessities they will be able to pay off these debts eventually when they have returned to a more financially stable position. While this has been okay for some, cardholders do run the risk of becoming delinquent or defaulting entirely on their debts, but according to this recent data card holders who are behind 90 days or more on their credit card payments have decreased, yet this does not mean that cardholders are without need when it comes to helping them find debt relief.

Consumers who have been in a position where their credit card debt continues to mount will only find themselves in a worse position if they are unable to quickly combat this debt. Even when minimum monthly payments are made consumers will find that they are paying a much higher overall amount and this, obviously, will deplete more of their finances which could potentially go to other debts or be saved for emergencies. Cardholders are given information on how much they will pay over all when they only meet minimum payments, but as if this wasn’t bad enough, cardholders who are charging on their credit card but may not have the income to even meet this minimum payment have found themselves in a position where not only are they doing damage to their credit score by missing payments but they may be putting themselves in a situation where they simply will not be able to pay off their debt in the near future.

It’s understandable that unemployment has been a problem for many, but if a consumer is in a position where they continue to charge on their credit card it’s likely that even in the best of scenarios they will be causing themselves financial strain. This is where some consumers have been able to consult with nonprofit credit counseling agencies or even talk with their credit card company, as unemployment could be a qualifier for certain types of hardship assistance plans or simply speaking with a counselor could help financially troubled consumers better manage their money during times where there is little or no income in their household. Obviously, there are no guaranteed solutions, but speaking with a credit card lender or credit counselor could help a consumer better manage their finances so that they will not continue to spend on credit during a time when they have no financial means to pay off their debt obligations, and again, even though some consumers feel they may have no other options this particular practice can be incredibly hurtful and set a consumer back years in terms of their credit score and history.