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Credit card debts & solutions
Credit card debt is one of the most common types of debt people face. The resulting debt may cause more than just a pinch on your resources. Nowadays, credit card issuers ask their customers to call them up for debt counseling services and even debt workout programs. Sounds quite a bit like being the cause of a sickness and then providing the cure for it. Anyways, credit card companies offer various options to customers like reducing minimum payments, reducing interest rates, and many more such services. There is only one niggling doubt – how effective are these services?
According to some consumer activists, cardholders have found that informing the credit card issuer could work to their detriment. In some cases, consumers found that their interest rates had been raised after they informed their card issuers about their present situation.
So what can be done in such a situation? If you are facing a bad debt problem, it is best to first contact a good credit counseling agency that will give you a lowdown on your options.
Here too, be on your guard. Before you sign up with a counseling agency it is good to know more about their services, fees and the extent to which they can help you. Otherwise you may end up paying through your nose for a service you may not need. It is also very important to check other facts like your counselor’s qualifications, how the payment is made and if there is any chance to waive the fees.
Don’t rush into a debt management program until you have a good idea of the avenues available to you. And most importantly, don’t call your bank until you are absolutely ready with your options.
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