A recent study conducted by the members of the credit card industry shows that a percentage of Americans admitted of having at least 1 or more credit cards in their wallets and would use them for their daily expenses and investments. The study also shows how easy it is for a consumer to make a purchase with a credit card, amounting from $ 0.50 to $ 100 or more. This may seem like a normal thing, but it shows that the people are guilty of nickel and diming themselves into financial unstableness and eventually a recession.
If you experienced financial problems and are now trying to erase credit card debt under the new federal stimulus package, this article will help you understand the pros and cons of the plan. On the positive side, you will be able to reduce your overall credit debt and actually wipe the slate clean with your creditors.
The majority of the consumers who were able to erase credit card debt through this new federal plan are able to do so for at least two years or more. They used to struggle endlessly with their monthly payments, so if you are planning on erasing your credit debt this is what you are going to go through with the new stimulus package.
A lot of Americans have also suggested enrolling in a non-profit debt consolidation program that can help them in getting rid of their credit debt. In order to reduce even a portion of the debt, you will need to at least have unsecured debt, which is a revolving debt extended to you through a line of credit with your creditors. Secured debt on the other hand cannot be eliminated as it is secured by a security deposit.
The downside to the federal plan is that you need to at least incur $ 10,000 worth of debt to qualify for the plan. If not, you can always erase credit card debt by enrolling in a debt consolidation program or applying for a debt consolidation loan. These two options will be able to help you in paying off your debts with an extended payback period.