Relief Coming to Credit Card Holders in DebtPosted: Updated:
KENNEWICK, Wash. - If you have credit card debt and are struggling to pay it off, there may be relief on the way.
There are new terms offering better repayment options. Banks are wanting to avoid losing money as more people file for bankruptcy, and creditors figure being more lenient will help consumers pay off their debt and give creditors the money they desperately need.
Good credit or bad, millions of us have experienced raised interest rates, canceled cards and additional fees a way of life that could soon change.
"The days of any time, any reason rate hikes and late fee traps have to end," Said President Obama to a group of top credit card company executives as he tries to impose stricter rules to stop unfair credit card rates and fees.
Local credit consumer counseling professionals are seeing the benefit of new terms for debt relief. Paula Villarreal with debt reduction services said creditors would rather be lenient, than lose money from people filing for bankruptcy.
"People are just coming in and their throwing their hands up and saying no more, I can't do it, Interest rates are to high. I just need to go this route and file," said Villarreal.
The goal of these new terms is to allow consumers to maintain a responsible monthly budget, establish a saving account for economic emergencies, make fixed monthly payments more affordable, and be out of debt quicker.
"Hopefully we can try and work something out where they are willing to work with the consumer and us and reduce those interest rates a little bit more," said Villarreal, adding now would be a good time to work with your creditor to pay off that unwanted debt.
Almost 80% of Americans use credit cards with the average unpaid balance at almost $11,000 dollars.