There is an enormous amount of debt help available to individuals who are drowning in credit card and consumer debt. It is estimated that the average household debt is approximately $5000. This does not include the debt amount incurred from home loans and car payment. This is the reason why millions of Americans seek relief through bankruptcy. However, bankruptcy is not always the necessary solution for those seeking debt help. True, bankruptcy will discharge current debt, and in most cases, the debtor is never required to repay these obligations. On the hand, a bankruptcy will follow an individual for ten years and may greatly increase the interest rates they receive when purchasing a new home or car.
Individuals in need of debt help have several options available to them. Many who are having financial problems avoid their creditors. This is understandable considering that creditors have an annoying habit of harassing people that owe money. Even when a debtor explains their situation and promises to send money on a specified date, this usually does not stop daily phone calls. It is the job of collection representatives to contact those who are past due on their payments. However, debtors in need of debt help may try contacting a manager for the lending institution. Together, lenders and debtors may establish an alternate payment schedule or payment amount that will better suit the debtor. This affords a debtor time to resolve financial issues, and temporary stops pesky phone calls.
In addition, credit counseling or management services offer debt help for consumers. These services work directly with hundreds of lenders to reduce a debtor’s interest rates on their credit cards. Moreover, credit counseling and management agencies consolidate all debt and handle the payments. Thus, consumers no longer make payments to their individual debtors. One payment is sent to the counseling or management agency, and the agency will apply the payment amount to the entire debt.