With each passing day, our daily needs are growing, and to meet them, we indulge ourselves in debt. Sometimes, handling all the credit card bills that are piling up becomes daunting. With interest rates climbing and monthly payments stretching your budget, it's easy to feel stuck in a cycle of debt. Many people struggle to keep up with rising costs, making debt relief a critical need.
Consolidated Credit Solutions offers a lifeline for those drowning in debt. They provide various services to help you manage and reduce your debt effectively. Their expert guidance, from credit counselling to debt consolidation, makes the process less stressful.
Their tailored plans aim to lower your interest rates and monthly payments, helping you pay off your debt faster. With Consolidated Credit, you get a clear path to financial freedom, so you can breathe easier and start building a more secure future.
Rising Problem of Credit Card Debt in the U.S.
If you are thinking that you are the only one who is struggling to manage your finances, then you are not right! Credit card delinquencies and overall consumer debt in the United States surged to alarming levels in 2023 and early 2024, indicating significant financial stress for many households.
Take a quick look at the current statistics:
Total consumer debt reached a record $17.5 trillion in 2023, a 3.6% increase from the previous year. This figure rose further to $17.69 trillion in Q1 2024.
Credit card delinquencies jumped more than 50% in 2023, with 6.4% of credit card debt transitioning into "serious delinquency" (90+ days past due). This rate increased to 6.9% in Q1 2024.
The average credit card interest rate surged from 14.5% to 21.5% between May 2022 and November 2023, the highest level on record. This has made it much more difficult for borrowers to pay down balances.
Younger generations are being hit hardest, with 15.3% of Gen Z credit card borrowers using at least 90% of their available credit. Over one-third of adults have more credit card debt than emergency savings.
How Does Consolidated Credit Solutions Help with Debt Relief?
Considering the current debt situation in the market, there has been a significant increase in demand for credit counselling and debt management services. In this situation, a consolidated credit solution can be one of the best options for you to opt for.
1. Starting with a free debt and budget evaluation
Consolidated Credit Solutions starts your debt relief journey with a free debt and budget evaluation. This initial step is crucial as it helps their expert counsellors understand your financial situation. During this evaluation, you'll discuss your income, expenses, and the total amount of debt you owe.
It's a friendly, non-judgmental process designed to give you a clear picture of your finances. The goal is to identify where your money is going and where you might have opportunities to save or reallocate funds. By the end of this evaluation, you'll have a solid foundation to build a personalized debt relief plan.
2. Customized advice on debt solutions: consolidation, management, settlement
Once your financial picture is clear, Consolidated Credit provides customized advice on the best debt solutions for your situation. They offer several options:
Debt Consolidation: If you're juggling multiple credit card payments, debt consolidation might be the solution for you. This involves combining all your debts into a single monthly payment, often with a lower interest rate. It simplifies your finances and can make your debt more manageable.
Debt Management: For those who need more structured help, a debt management plan (DMP) can be a lifesaver. Consolidated Credit negotiates with your creditors to lower interest rates and waive fees. You then make a single monthly payment to Consolidated Credit, which distributes the funds to your creditors. This approach helps you pay off your debt faster and with less stress.
Debt Settlement: In cases where debt has become unmanageable, debt settlement might be an option. This involves negotiating with creditors to settle your debt for less than the full amount owed. While it can impact your credit score, it provides a way out of severe debt situations.
3. Enrollment assistance into a debt management program
If a debt management plan (DMP) fits you best, Consolidated Credit will assist you with enrollment. This process is designed to be straightforward and supportive. Their counsellors will help you gather the necessary documentation and work with your creditors to establish the plan.
You'll receive clear instructions on how to make your monthly payments and what to expect throughout the program. With ongoing support and guidance from Consolidated Credit, you’ll stay on track and steadily work towards becoming debt-free.
Conclusion
Understanding how Consolidated Credit Solutions can help with debt management is a game-changer. Their free debt and budget evaluation sets the stage for tailored advice on the best debt solutions for you. Whether it's debt consolidation, management, or settlement, their expert guidance ensures you’re on the right track. Enrolling in their debt management program is seamless and supportive, providing the structure you need to tackle your debt effectively.
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