In a May 2013 Story from InsideArm.com which is the newsletter for the debt collection industry, literally 15% of Americans with any type of credit account have at least one of those accounts in collection and appearing on their credit report. It is higher th an in the last quarter of 2012. That number is from the 1st quarter of 2013, and is a new record. The only bright spot is that the balances of the collection accounts is slightly lower. Could that mean that consumers are seeking help earlier?
Here is what the picture looks like going back 10 Years:
Just as I have always maintained in all my writings, this is a new economy and not about to change anytime soon. The dollar devalues every year by a significant amount thanks to the policies of the Federal Reserve Bank, and consumers simply must use credit, or money which they do not have to bridge the gap. Each year the problem becomes a bit more severe than the year before.
Given enough time payments on the debt become unmanageable and the consumer must find a solution. Very often that solution becomes a conversation with a credit counselor, and also often a Debt Management Program will simply not lower the payments enough to make a difference. Note: A Debt Management Program was created by the banks over 20 years ago. It will lower interest, but not usually lower the payment in a significant way, any credit cards placed into the program must be closed but the debt is paid back in full in less than 5 years. For a further explanation of how this works, simply visit: what is a debt management program.
If the consumer cannot meet the minimum payment in a debt management program then they begin exploring debt settlement programs. The essence of a settlement program and a very basic explanation is that the creditor will accept much less than the original debt amount that is currently owed, rather than get nothing if the consumer completely defaults. For a more detailed explanation of this debt resolution program simply visit debt settlement program explained. The fact that debt settlement programs have become a huge industry should speak volumes confirming the fact that we are in a totally new economic environment, and one that is not about to change at all. Can you imagine your parents and grand parents talking about entering a debt settlement program to get out from under credit card debt. Chances are, your grandparents didn’t even have credit cards. Imagine living your whole life without having anything like a credit card to fall back on in an emergency, and you will really begin to understand just how different our economic times have become.
So what is the bottom line. Along with the new economy has come a multitude of highly regulated and effective debt relief programs to help consumers recover from the oppression of debt. And, clearly, as we have just seen, if you need to avail yourself of one of them, know that you are not alone.
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The ADE Debt Relief Phone Numbers
Free Credit Counseling--- 877-766-2465
Student Loan Consolidation---877-766-2465
Free Bankruptcy Counseling-- 516-204-4640 (National Number)
Credit Restoration Counseling-888-586-2661 Inc. Credit Report Review
Each of these numbers provides Free Counseling.
Yours Truly
Steven Ciantro
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