Credit Card Debt - What You Must Know
Many Americans are unaware that roughly 75% of the revenues reported by credit card companies are interest-only payments from consumers unable to pay their credit card statement in full.
Astonishingly, more than one billion credit cards are currently in the hands of U.S. consumers. According to recent studies, the average American carries over $10,000 in credit card debt. From one month to the next, approximately 60% of cardholders carry forward the balance owed on these credit cards.
According to industry estimates, a consumer making the minimum monthly payment on a balance of just $2,500 will need almost three-and-a-half decades to pay off this balance. In the end, payments will total more than 300% of the principle balance that was originally owed.
Credit card industry practices have recently come under increased Congressional scrutiny. Particularly disturbing is the practice of hiking a consumer’s credit card interest rate, sometimes by as much as 30% if their FICO score drops. A consumer may find his or her interest rate go up even if credit card bills have been paid promptly each month.
Adjustable rate mortgages, or ARMs, are another source of concern in the current economic environment. With ARMs valued at more than $600 billion scheduled to reset in 2008, higher interest rates are expected to boost monthly mortgage payments by $350 or more for many Americans. Estimates now peg the number of American homeowners facing foreclosure in 2008 at 1.44 million.
Fortunately, there are Debt Help solutions if you’re facing insurmountable credit card debt or an ARM increase that will make it impossible to pay down your existing credit card debt.
You may be eligible for Consumer Credit Counseling, Debt Settlement and/or a Foreclosure Prevention Program.
As an expert in these fields, Debt Relief Options™ has built a referral database listing the nation’s top companies for each of the relevant industries. Every one of these companies has committed to providing any DRO application with confidential financial review at absolutely no charge.
You’re not alone if you’re struggling with credit card debt. Let DRO find the Debt Reduction plan that’s best for you today!
