2010

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Contents

How to Consolidate Student Loans

How to Reduce Student Loan Debt

How to Defer Student Loans

How to Apply for Loan Forgiveness

How to Consolidate Your Bills

How to Freeze Your Credit Report

How to Get a Low Interest Rate Credit Card

How to File Taxes Online for Free

How to File for Unemployment

How to File for Unemployment in Texas

How to File for Unemployment in California

How to File for Unemployment in Kentucky

How to File for Unemployment in Michigan

How to File for Unemployment in Nevada

How to File for Unemployment in North Carolina

How to File for Unemployment in Ohio

How to File for Unemployment in Oregon

How to File for Unemployment in Rhode Island

How to File for Unemployment in South Carolina

How to File for Unemployment in Tennessee

How to File for Unemployment in Florida

How to Apply for Financial Aid

How to Apply for Financial Aid at Ohio State University

How to Apply for Financial Aid at New York University

How to Apply for Financial Aid at University of Southern California

How to Apply for Financial Aid for College

Seek Advice and Get Credit Card Debt Consolidation

Credit card problems can strike any individual. Professionals, students, the unemployed, single, married, and more; people who have debt problems can be anyone of these. There is no specific status or classification that clearly identifies the debt burdened population. Rather, what’s common among these people who have more debts than they can afford to pay is the fact that they only seek the help of card debt consolidation companies when it is almost “too late”.

Credit counselor Karina Arancibia states that “They (debtors) come to us when they have run out of solutions.” Ms. Arancibia, who works for Credit Canada, a non-profit credit counseling agency, further explains: “It is not until they lose their job that most people go into panic mode and finally admit they have a problem.”

The Profile of a Typical Debtor

“A lot of people come in here and say, ‘I was OK until I lost my job.’ But they are $25,000 in debt,” notes Ms. Arancibia. It seems that most debtors who need to consolidate their credit card debts do not really know that they have a problem. “They are not OK. They’re just making their minimum monthly payments,” adds Ms. Arancibia.

When asked about the typical profile of a debtor who seeks card debt consolidation services, Ms. Arancibia claims that it is quite impossible to give a clear sketch of a typical client. However, she narrates that most of the debtors are “couples with kids, a house and a huge amount (of debt) accumulated over time. The average debt is $30,000 to $60,000. They have good jobs but they have credit cards and huge lines of credit.”

Aside from the married couples with debt problems, people with debt problems may also be “single people who suddenly lose their jobs… students who just got out of school with student loans on top of credit card debt. They’re just starting work and not making enough to pay their debts,” Ms. Arancibia further notes.

Seeking Advice Should be a Priority

Experts point out that the moment debtors start missing their monthly repayments, they should immediately seek the advice of credit counselors and card debt consolidation companies. If not, they must inform their credit card companies. Cathy Velazquez, Senior Vice President of MBNA Canada - a credit card company, suggests that customers should contact their credit card companies the moment they feel that they are about to face a financial mess.

“The earlier they contact us the better it is for us to be in a situation to help them,” Ms. Velasquez says. “We can look at better repayment terms. There are myriad solutions we can come up with it,” she adds. Ms. Velasquez also points out that her company does not want their customers to file for bankruptcy. “There are a number of better solutions than that,” she furthers.

Credit Card Debt Consolidation - Possible Solutions

Credit counselors and card debt consolidation companies encourage debtors to avail of free counseling services. Through these services, debtors and counselors alike can readily determine which set of services is appropriate for a typical financial problem. During this counseling process, Ms. Aranciba notes that debtors should be able to realize that they really have a problem and they should stop spending more cash than they are earning.

In line with the attempts to lower the number of debtors who file for bankruptcy, some credit card companies came up with an “early detection system”. The said program tries to identify customers who are in financial trouble based on their spending habits, credit and cash usage, and bill payments.