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American credit card debt has become a growing concern for many individuals in the last few years. In fact, data shows that the total amount of credit card debt in the United States has now topped one trillion dollars. The rise of credit card debt can largely be attributed to a number of factors.
When these factors are combined, it helps to explain why the total amount of debt has reached such unprecedented levels. In this helpful guide, we will discuss some of the main contributors to the rise of credit card debt and five benefits a debt reduction program can provide for those struggling to stay ahead of their bills.
Factors contributing to the rise of American credit card debt.
High-interest rates.
Interest rates for credit card debt are typically higher than other types of loans, and if consumers only make the minimum payment each month, they can end up paying more in interest than the actual balance owed. High-interest rates can also make it more difficult for consumers to pay off their debts, as a large portion of their payments are going towards interest.
Poor financial management.
Many consumers do not have a budget or a plan for managing their money. This can cause them to overspend and rely on credit cards to make ends meet. Additionally, some consumers may not understand the consequences of carrying credit card debt and how it can negatively impact their credit score.
Ease of access to credit.
Credit card companies have made it easier for consumers to access credit, which can lead to overspending. Consumers can easily apply for multiple credit cards, which can contribute to the accumulation of debt.
Benefits of a debt reduction program.
Now that we have discussed some of the factors contributing to the rise of American credit card debt, let's take a look at the benefits a debt reduction program can provide for people who feel overwhelmed by their amount of debt:
Reduced interest rates.
In many debt reduction programs, consumers can negotiate with their creditors for lower interest rates, which can reduce their overall debt. This can make it easier for them to pay off their debts and help them save money on interest charges.
Consolidated payments.
Debt reduction programs can help consumers consolidate their credit card debts into one payment. This can make it easier for consumers to manage their debts, as they do not have to worry about multiple payments to different creditors.
Improved credit score.
Debt reduction programs can help consumers improve their credit score by paying off their debts and making timely payments. This can lead to better credit terms and lower interest rates in the future.
Financial education.
Many debt reduction programs offer financial education and counseling services to help consumers better manage their finances. Consumers can learn how to create a budget and plan for their financial future, which can prevent them from accumulating debt in the future.
Reduced stress.
Debt can cause a great deal of stress for consumers. Debt reduction programs can help alleviate this stress by providing a plan for paying off debts and helping consumers regain control of their finances.
Are you struggling with credit card debt in America?
We Solve Debt was created to help those struggling with debt overcome these burdens and get your finances back on track. We offer a variety of debt reduction resources and multiple relief options. What’s even better, though, is the experience and proven tactics we provide for each of our clients. We understand that getting out from credit card debt can seem overwhelming, but when you partner with us, you don’t have to do it alone. You can learn more about our program online, or contact us to get started today.
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We cannot guarantee that your enrolled accounts will be resolved for a specific amount or percentage or within a specific timeframe. Not all Clients complete the program. The program is not available in all states; fees may vary by state. The use of debt consolidation services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding obligations may increase from the accrual of fees and interest. Certain creditors and types of debts are not eligible for enrollment. C.P.D. Reg. No. – 21-04861.