For those that are committed to getting out of credit card debt once and for all, most mainstream creditors offer a repayment solution through approved credit counseling agencies. The interest rates are typically reduced or in some cases eliminated. If you are experiencing late and over the limit fees, those will stop once your accounts are accepted. With rate and fee reductions, most consumers pay off their credit card debt in 3 –5 years depending on whom they owe and how much they owe. Whether you have paid on time every month or have missed payments here and there you can still take advantage of this program to free yourself from credit card debt. Eligible types of debt include, credit cards, medical bills, collection accounts, payday loans, and some unsecured personal loans.
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As credit has become more available in recent years and consumers are feeling more optimistic about the economy, many households have been carrying credit card balances month over month. While many have accepted credit card debt as a part of life, it does not have to be. Those who sit down and calculate the real numbers quickly learn the cost of credit card debt is very expensive and often times causes families and individuals alike to delay or give up other financial goals such as saving for college, buying a home, or saving for retirement.
As credit card debt and corresponding monthly payments swell, many consumers look to debt consolidation for relief. Most consumers are familiar with the typical debt consolidation solutions such as a personal loan, cashing in a retirement plan, balance transfers, and taking equity out of your home. On the surface, these may look like acceptable solutions and most do get some sort of relief in the form of monthly savings; however this is usually short lived as many consumers run up the balances again on their recently paid off credit cards further compounding the problem because now most consumers wind up doubling their debt. Without fundamental changes to the household budget and a discipline to stop charging on the accounts you will never get out of the debt and more importantly you cannot borrow your way out of debt.
