Some people seem to think that credit card debt consolidation companies are all scams started by agents of evil to bankrupt consumers who have debt payment problems. In this once in one hundred years recession, there are too many families who are burdened by excessive credit card debt.
Credit cards are unsecured loans to people. Since there is no collateral to back up or secure repayment of the loan, credit card issuers are allowed to charge a higher interest rate to compensate their assumption of higher risk. This means that when card holders have a monetary hardship such as job loss, reduction in paycheck amount or unforeseen medical expenses, their credit card balances can quickly avalanche to a very unmanageable amount. Refusing to face the reality of an excessive credit card(s) balance(s) is a very swift trip to bankruptcy.
This is where credit card relief agencies come to the rescue of overwhelmed holders of these ones. They become the advocate of the distressed holder one. They contact the card issuers and negotiate on behalf of the card holders. In most cases, the agencies can convince the card issuers to waive some of the fees and penalties as well as stopping the interest, fees and penalties from driving up the balances even further. The relief agencies also receive the monthly payments from the card holder and pay them out to the card issuers.
This protects the card holders from harassing collections calls. It also allows the card holder to write just one check a month, simplifying their record keeping requirements. Best of all, it lets the card holder stop the tsunami effects of interest, fees and penalties on their accounts. They can breathe a little easier and get on with their lives, rebuilding their credit rating with every payment they make.
All in all, there are reputable companies for consolidating debt you just have to do the due research and comparison.
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