Los Angeles, CA (PRWEB) April 9, 2010
Crippling growth in credit card debt has seen a steady rise ever since credit cards were first introduced in America over 50 years ago. Since then, Americans have had a lifelong love affair with credit cards and buying & spending on plastic. But that love affair how now run its course. Federal Debt Relief Program - a private, non-government program, discusses the issue of credit card debt and what the best debt relief options available today are.
It's not uncommon for individuals and families today to be using credit cards to make ends meet, using plastic to cover monthly deficits in their personal household budgets. Not only is this practice not uncommon, it's become a virtual necessity, especially when one suffers a job loss, illness, serious injury or other crisis.
Yet credit cards have their spending limits, and there are personal limits as well as to how much one can afford to pay each month. And this is where credit card debt relief programs can help.
Debt Consolidation - One of the oldest debt relief programs, debt consolidation is a program in which, typically, a new loan is taken out to pay off existing loans or credit card bills. This new, single loan offers the convenience of a single monthly payment to manage, and possibly a lower interest rate and/or a fixed rate.
Yet consumers need to be wary of debt consolidation loans that are packaged in the form of home equity loans. In these cases, one's home is used as collateral. This may or may not be a problem down the road, so long as the borrower is able to maintain making their monthly loan payments on time.
Debt Settlement - One of the newer debt relief programs today, debt settlement is a program which only works for unsecured debt such as credit card debt and medical bills. Mortgage loans, government loans, and student loans are not eligible for debt settlement. In this type of program, outstanding debt is negotiated between a debt relief firm working on behalf of the consumer in debt, and their creditors. In most cases, unsecured debt can be reduced by up to 50%, allowing for the balance to be paid off in much quicker fashion.
Consumer Credit Counseling - In this program, credit counselors work with those in debt to examine their finances, determine strengths and weaknesses, establish a budget, and possibly negotiate better payment terms for those in debt. Consumer credit counseling works best for those who are employed, and who are able to stick with a monthly household budget.
With this many options of credit card debt relief programs available today, there is no reason for anyone to continue to suffer under the weight of unbearable amounts of credit card debt which they are unable to pay.
Federal Debt Relief Program offers a free debt evaluation and savings quote, which can be taken advantage of at their website: