Help with Credit Card Debt
There are over six hundred million credit cards held by American consumers and almost 99 percent of the total revolving debt in the US markets is credit card debt. In these times of economic hardships, citizens are looking to the government for credit card debt help. The administration has responded by enacting the Credit Card Accountability Responsibility and Disclosure Act of 2009 which has made sweeping reforms to the way credit card companies operate. The reforms made under this act will help curb the spiraling credit card debt. One of the other avenues for help is to contact credit counseling services or consolidating your credit card debt.
Credit Card Debt Relief Act
The Credit Card Accountability Responsibility and Disclosure Act of 2009 popularly referred to as the Credit Card Reform Act of 2009 has made some significant changes to the way credit card companies conduct their business. Under the new act companies cannot make changes to the interest rate without informing the customers. Companies will have to inform the customers at least 45 days in advance before changing the interest rates.
The federal government credit card debt relief program also stipulates that card companies have to send billing statements at least 21 days in advance. This will allow customers ample time to respond, earlier the limit was 14 days. Another important reform under this act was that companies have a fixed due date every month and if that date falls on a weekend or recognized bank holiday, then the next business day will be considered as the due date for payments.
As part of the credit card debt help from government program, card companies cannot sell credit cards to individuals under the age of 21. Companies can only give credit cards to these individuals if they have a co signer who is above 21 and has a steady income. The new credit card debt relief program also puts restrictions on card companies from charging heavy 'Over the Limit' fees.
One of the avenues for best credit card debt help are the consumer credit counseling services. These agencies provide expert financial advise and will also negotiate on your behalf with credit card companies regarding your debt. When looking for a credit counseling agency look for one that is associated with the Association of Independent Consumer Credit Counseling Agencies (AICCCA) or with the National Foundation for Credit Counseling (NFCC).
They have expert counselors who will help you with credit card debt settlement for a small fee. The counselor will talk to you over the phone and get your financial details or might set up a face to face interview as part of their program. Look for an agency that charges you after the settlement or one that provides its services for free. These agencies will give you credit card debt consolidation tips and advice you some lifestyle changes to help you deal with your financial problems.
If you are wondering will debt consolidation help, well it depends on your financial situation and the counselor at the agency will help you evaluate your situation. Debt consolidation often times than not is the best way to deal with credit card debt. You take one loan with less interest rate to pay off the negotiated existing debt amount. Many a time, the installment on the consolidation loan is less than the combined installment of your other credit card debt.
If you are looking for credit card debt help, it is advisable to talk to your creditors directly before contacting any credit counseling agency. Contacting your creditors directly and being honest about your financial situation will at least let them know about your intentions to pay the loan. Creditors take this as a positive sign and might extend you some leniency.
