Almost every phone call I receive as a credit counselor is from a consumer struggling to try and do the right thing by paying back their credit card debt on which the interest rate has risen to 29.9%. One day the awakening comes that minimum payments at that interest will take thirty years to pay off, here is an example using our credit card interest rate calculator: A 10,000 balance at 29.9% interest and a usual minimum payment of 220.00 dollars (this represents 2.2% of the balance and is standard in the banking industry, will not payoff in your lifetime. Here is how the calculator puts it: It will take you “infinite months” to pay off your card.
It will also cost you over 25,000 dollars just in interest! Ouch. The above numbers are facts, just like two plus two equals four every time. So you say, I thought the “Credit Card Reform Act of 2009” stopped this from happening. Well, not exactly, like everything else in Washington, the act used slight of hand. It merely said that the banks had to give you a notice that your interest rate was about to go up ,and if you failed to respond by closing the card, it would. So why didn’t you jump to respond? Is it possible you were so busy trying to run your busy life that you simply did not see it? Of course. Believe me, as a ten year consumer advocate who started in the non nonprofit industry, I am on your side.
So, lets get to the bottom line. Once you have figured all this out, your first step is usually to call the credit card company and make an appeal. Surely, you think they will be reasonable. You very quickly realize that nothing could be further from the truth. It will be like talking to a wall. They are not in business to help you. The fact is, now, they love having you as a customer in this position. They have become your loan shark. You know, Uncle Vito from the neighborhood. The policy of all credit card companies is to say no to help.
They, the banks put in place 20 years ago debt consolidation programs called debt management programs, or DMP’s. These are the only structured programs that can fix your high interest rate, pay for life situation. You will lower your interest to single digits, pay off the credit card in 5 years or less, and maybe even lower the payment, and definitely save a literal fortune in interest by enrolling in one, which takes all of 15 minutes to do. You have to enroll through a company that offers the program. Or, you can simply contact me directly, or visit: the American Debt Enders website, a company without a single complaint, rated 3rd Nationally by and get a free quote and go from there.
The ADE Debt Relief Phone Numbers:
Free Credit Counseling--- 877-766-2465
Student Loan Consolidation---877-766-2465
Free Ch-7 Bankruptcy Counseling-- 516-204-4640 (National Number)
If you enjoyed reading this free credit counseling article, do feel free to subscribe. It is absolutely free. Simply visit: www.freecreditcounselingblog.com and leave your email address. We never share your information.
American Debt Enders
Rated 3rd Nationally
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club
Linkedin ProfileAuthor #1 Ranked Debt Relief Newsletter