Currently it’s been over a few years of our country being stuck in a horrid economic recession. Most economic experts have been promising to fix the program and get the US back to being the economic superpower of the globe, but it looks more and more like this may not be occurring again for quite some time.

There have been a number of misgivings that have lead us to such a low point in our economic timeline, starting from the home loan sector to the car industry. But there is one more problem that is greatly hurting American debtors at this point and that is large sums of consumer credit card debt. We have come to a record high concerning credit card debt, and it only continues to get worse.

Fortunately for overwhelmed consumers there are debt relief programs on the market for consumers who are seeking out debt freedom. The most sensible have shown to be consumer credit counseling and credit card debt settlement. Both possess their respective pros and cons and will benefit Americans who are trapped deep in credit card debt.

With credit counseling consumers can look to get their interest rates vastly lowered. One more plus of the structured plan is that the monthly payment will be a fixed payment for the entirety of the program, thus offering consumers the ability to pay off their debts in a much quicker amount of time. In addition it’s just one monthly payment, which significantly helps aide the problem of making multiple payments to various creditors every month.

There are however problems with credit counseling these issues are that if the debtor falls one month behind they can get dropped off of the program. Also the program can show adversely to the credit history while on the program, which can hurt obtaining a mortgage. More than 75% of people who sign into credit counseling programs end up failing off.

Then there is credit card debt relief, this plan can really assist overwhelmed consumers trapped in credit card debt. This option is helpful because the actual balances are reduced not the interest rate. So the debtor will look to save around 50% of what they currently owe. In addition this plan will assist the consumer out of debt within just a few short years. During a recession this is showing to be the most lucrative form of debt relief.

The downside to debt settlement is that the debtor must slip behind on the debts in order for the creditors to be in position to negotiate the debt. So this obviously has a very negative effect on the consumers credit history, in addition the debtor will go through some type of collection activity from the collectors, this will be very nerve racking.

Whatever method is used they can both help the debtor to find debt freedom. And throughout this economic catastrophe consumers honestly can’t afford to be trapped in credit card debt for eons shelling out gigantic sums of income to the money driven credit card issuers. Once out of credit card debt then people can honestly start to contribute to helping the economy get back off the ground and healthy once again.

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