Addiction to Credit Cards

In today's society many Americans are addicted to buying almost everything on credit. Perhaps out of convenience - to simplify their life or maybe out of personal or economical hardship. The retailers make it possible for us to thrive on this concept with buying everything on credit.

However, it doesn't take long before your wallet is filled up with bank cards and department store cards. Most people think that it is easy to pay them off at the end of the month. Easier said than done. Many people start to justify reasons to use the cards. It's easier than to part with cash.

The debt builds up slowly with no major purchases to show for. And before you know it - you can be thousands of dollars in debt with no end in sight. This type of consumer debt is considered unsecured debt verses secured debt. The difference between the two types of debt is at secured debt is backed by some type of collateral with fixed payments to reduce the debt while unsecured has high interest rates, no tax advantages and is not collateralized.

In the beginning, the consumer feels it's alright about repaying only the monthly minimum payment because they believe the next month they will be able to paid more on their account. This gives the consumer a feeling of confidence to continue to spend more freely and leads them down the path of spending more than they earn each month. However this spiraling debt only continues to grow and the consumer is now facing added pressure to met their financial obligations.

Because of this spiraling debt, the consumer needs to consider how to get out of debt. One of the options for the consumer is debt settlement. Debt settlement is a method by which a third party works on the consumer's behalf to negotiate with the credit card companies. This process requires the consumer to stop using their credit cards, budget their finances and start saving a certain amount of money each month. This money is placed in a "trust" account and until it achieves at least half of your lowest balance credit card before the third party company can start negotiating. This process may take between 12 months to 48 months to clear all of your unsecured debt.

Now is the time to explore how our debt settlement company can help you out of the depths of financial problems. Contact Debt Free Partners to speak with a representative.