Many people have had a hard time financially in 2009. Good people who have always paid their bills on time. There has been a lot of "robbing Peter to pay Paul" going on, paying for necessities with credit cards and making attempts to cut even the smallest costs to get by.
Unfortunately, credit card debt has become the norm in American Society. The interest rates are huge and penalties even worse. The average consumer is carrying $12,000 in credit card debt with an interest rate of 27%. That can take years to pay off. The recent legislation regarding credit card fees has caused interest rates on revolving credit to increase and the rates look to go even higher in 2010.
There are a lot of companies out there offering debt management or debt relief. Most of these companies charge a high upfront fee and then a monthly fee. Some attempt to get the debt charged off and then settled for a portion of what is owed and others try to get the debt managed into affordable payments. Before signing on with any of these companies, it is highly recommended that you research the company selected and search for complaints against them.
CCCS is the Consumer Credit Counseling Service. They are a non-profit agency and have been around for over 50 years and have over 60 offices in the United States. You can download a copy of their brochure by clicking here.
After being overwhelmed with consumers seeking debt relief, CCCS expanded and became Apprisen Financial Advocates. They have launched an online debt management and counseling service called WEBVISOR. The WEBVISOR system is a very easy to use system where the consumer can remain completely anonymous. The process is totally free and takes about 30 minutes. Once completed, WEBADVISOR will immediately provide an action plan that summarizes your financial situation, options to improve your finances and other resources for help. The WEBVISOR system will also let you know if you are a candidate for a Debt Management Program.
Through the Debt Management Program offered by Apprisen, they will act on behalf of the consumer working to get a mutually agreed upon payment plan which may include lower interest rates and reduced fees. The service is very affordable with a $25 set up fee and $25/month maintenance fee (these fees can also be waived due to hardship). Most plans are set up to have debts paid off within 48 months.
Appisen also offers financial counseling in person and over the phone. Just remember....to make the debt go away, you must address it.
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Tina Merritt and Assoc. can be reached at email: tina@tinamerritt.com or 757-287-6338.
Our Network consists of both buyer and listing specialists helping buyers and sellers in Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Isle of Wight County, Hampton, Newport News and Poquoson, Virginia.
Good information for consumers. 2009 is behind us and 2010 will be a great year for every one.
I am putting this information in our package that we give short sale sellers to help them begin a new life...best wishes to you in the new year !
Good morning Tina,
You are so right about consumer debt, I didn't realize that it was as high as you said. Paying just the minimun payment folks will never get out of debt or at least that is the way it seems. Thanks for the heads up.
Happy New Year ma'am.
Tina,
Great Post. I will definitely look into further and share with my clients.
Thanks for sharing,
Matt Naumann
Good information> Ignoring the problem will not make it go away. Face it and deal with it. A professional advisor will get you headed in the right direction.