New York (PRWEB) August 17, 2012
According to an analysis of consumer-credit data performed by credit reporting agency TransUnion, the average credit card debt per borrower in the United States grew about 6% in the second quarter from a year earlier. In addition, banks have recently become more open to issuing new credit cards to non-prime borrowers, with the number of new cards also rising 4% from last year based on the same report. With increased opportunities for racking up debt, top debt relief company National Debt Relief prepares to meet the demand for credit card debt relief options that may arise in the near future.
Prime borrowers refer to consumers with a score between 900 and 990 based on the VantageScore credit scale and are normally considered by financial institutions as the safest credit bet. Non-prime borrowers, on the other hand, are regarded as high-risk customers with credit scores of 700 or lower, and while they are not on the lowest end of the scale, they are also generally prone to make late payments due to their less-than-sterling credit status.
“The credit pie is bigger, and nonprime consumers are getting a bigger slice of that pie,” says Ezra Becker, vice president at TransUnion’s financial services business unit. Tight competition is believed to be the reason why banks have taken to issuing credit cards to high-risk consumers; with existing customers refusing to sign up for additional credit, banks turn to non-prime borrowers to drum up more business.
With the country's overall economy remaining shaky, what with unemployment at a high of 8.3% and consumer growth improving by only 1.5% in the April-June quarter according to the U.S. Commerce and Labor Departments, many Americans remain anxious about uncertain employment, slow wage gains, and continued high debts, and high risk borrowers are likely to default on their maxed-out credit cards. National Debt Relief provides the best get-out-of-debt plan to free consumers from substantial financial troubles.
Credit card debt consolidation is often the first option considered by borrowers for getting back on track with their finances. The concept involves taking out a new loan with a supposedly lower interest rate; the debt relief provided by this loan allows consumers to pay off unsecured debts, and once that's done, they will only need to make a single payment each month for the new loan.
As appealing as this option may be, there's always a great risk of paying even higher interest rates than that of one's original debt because of tricky clauses and misleading policies. Payments can be stretched over a much longer period than a customer believes he signed up for, causing him to end up paying more money to their new lender.
National Debt Relief offers a more beneficial debt settlement plan—borrowers can negotiate credit card debt down, get lowered monthly program payments, and get out of debt much sooner than they expected. "Our debt arbitrators work on your behalf to negotiate a smaller total debt amount for you,” explains a National Debt Relief spokesperson.
“Typically, your lenders may agree to an amount that is literally a fraction of what your balance is currently. After all, it makes more sense for lenders to get guaranteed payments from you now instead of the little bits and pieces of it over the next five to seven years or more. So, with debt settlement, a lower overall amount is agreed upon and you pay only that amount—not the larger total of your debt—then those debts are satisfied."