Boca Raton, FL (PRWEB) March 18, 2013
Many consumers do not pay attention to where they are headed when it comes to credit card debt. Balances just keep climbing, sometimes interest rates are raised and consumers just keep struggling each month to meet the minimum payments but often make little progress towards paying down the balances in a reasonable period of time. Consumers that are paying minimum payments each month, still using the credit cards and piling up more debt are headed for trouble. A debt management program can put a stop to this and get the accounts under control. By reducing the interest rates and getting the accounts closed continuing debt accumulation stops and debt reduction begins. Statistical data shows that delinquencies nationally on credit cards are up for the first quarter of 2013 (Source Bankrate.com).
Many consumers get caught up in the convenience of using credit cards without regard to interest charges and how long it will take them to pay the accounts off with the all too often “buy now and pay later” mentality. Credit consumers need to take a look at a few signs that they are headed for trouble and take action before the situation spins out of control. The following are signs of potential debt problems.
1. Is the consumer paying just minimum payments each month on the accounts?
2. Is the consumer you continuing to use the account even though the accounts are only receiving minimum payments?
3. Is the consumer transferring balances to pay one credit card with available credit from another credit card, (robbing Peter to pay Paul)
4. Have interest rates been raised due to carrying high balances?
5. Have payments been late resulting in late charges?
These are a few signs that a consumer could be headed for more serious debt problems. It is the best policy to only spend what can be paid in full ideally when the first bill arrives from the purchases made or at least within a few months of the purchase or purchases. If the amount of debt just keeps growing or if just minimum payments are being made at high interest rates debt management should be explored. Through a debt management program the rates can be dropped so that minimum payments will decrease the balances faster, late fee will be stopped if accounts are delinquent and progress towards paying off the debts begins. Here are some tips on deciding what type of program a consumer may benefit from.
1. Choose a firm with an excellent BBB Rating there are many very bad debt service companies operating so checking their record is very important.
2. The right debt management service should explore possible balance transfer opportunities along with the debt management program to ensure the consumer is getting the best rates possible.
3. The debt management firm should be able to quote payoff times and savings on individual accounts and provide the consumer with these figures.
4. Be careful not to confuse “Debt Settlement” with Debt Management, these are two totally different services. For consumers that need and want to maintain and improve their credit ratings accounts must be paid in full. In a “Debt Settlement” program accounts are not paid in full. In a Debt Management program accounts are paid in full.
5. The debt management service should not require any up front fees before beginning the proposal process and getting accounts set up on the debt management program.
6. The debt management firm should offer a written guarantee.
For more information on Specialized Debt Management, visit http://www.debtsynergy.com.