Credit cards and spending with credit and on plastic is a fact of modern day life. For the most part, the conveniences outweigh the drawbacks. I say “for the most part” because although the drawbacks to credit cards and spending on credit are few – the drawbacks can hurt indeed.
Consider the following: the average American household has upwards of $9,000 in credit card debt. These individuals and families have made the conscious decision to spend on credit, carry a monthly balance and make their monthly payments – minimum monthly payments or otherwise.
One problem arises (however discreetly) when one elects or feels that they can only afford to pay the minimum monthly payments on their credit cards. What happens is that such large balances as described above can take up to two decades to pay off if one only makes the minimum monthly payments. In the end, the total repayment cost can be double of what the original purchases were. Truly shocking.
Then all it takes is for a person to receive a pink slip, some medical emergency or other emergency to arise and then a person can truly find themselves way over their head in debt and unable to make their monthly credit card payments. What can a person or household do in such a situation?
The banks and credit card companies will start calling and sending letters, followed by the same from collection agencies. It was even in the news recently in the U.K. that a credit collector offered to wipe clean the collection charges owed by a client in exchange for sexual favors. What has the world come to?
The good news is that when it comes to credit card debt there is true debt relief available. This debt relief comes in many shapes and forms, programs and services.
Most people are familiar with such debt relief programs as debt consolidation, debt settlement, consumer credit counseling, and even bankruptcy (which should only be considered in extreme debt cases). Therefore it is advisable to seek ways to avoid bankruptcy, rather than consider it as a first option when it comes to dealing with credit card debt.