Can Debt Settlement Help With Holiday Bills?
The holidays are a highly stressful time for shoppers, especially shoppers who have children. In spite of the recession, parents, spouses and even coworkers might be pressured to make sure their loved ones are not disappointed with their gifts. This may lead people to spend money they just do not have, literally, by using credit cards, opening up department store credit cards, signing up for new credit cards or even using unsecured lines of credit from banks and other lenders. The term "robbing Peter to pay Paul" comes to mind, because the bills for these debts begin to roll in come January, and the holiday spirit quickly turns into massive debt problems. When consumers look at every available option they have to pay off their debts, one possibility is usually debt settlement, because it can cut debt by a significant amount.
If you are in debt from holiday spending, it is probably in one of the following categories: massive credit card debt; department store credit card debt; or, debt from a bill you ignored so that you could buy more gifts. Department store cards usually have interest rates that start in the 20 percent range and go up from there. Whether you were holiday shopping at the GAP, Macy's or some other clothing store, you may have incurred serious debt.
Credit card use spikes during the holidays as people spend in December and then pay in January, February and March. However, with unemployment so high, many of those consumers who put large sums on their credit cards may not be able to pay back that money. In fact, some people may have decided to throw caution to the wind and try to make the holidays great in spite of the economy. Regardless of how it happened, holiday credit card debt can add up to tens of thousands of dollars once interest rates and late fees are calculated.
Ignoring bills is never an idea. However, in the past, some people would forego paying certain bills during the holidays because they knew a bonus would save them from their debts. However, even early in 2010, America is still losing 80,000+ jobs a month, and no end is in sight.
With each of these debt problems, a debt settlement company may be able to help consumers pay these debts off quicker. Normally, a debt settlement company will work with consumers to create a debt management plan and then negotiate with lenders to lower the overall debt owed. For example, if you owe $40,000 on three credit cards and two department store cards, professional debt assistance could help lower than number by 40 percent or more, knocking off tens of thousands of dollars. So, instead of paying off $400 a month for a decade, you could be debt free within 18-36 months in some cases.
About the Author
J Chase is a debt settlement professional. He is affiliated with a national organization which has helped 1000s of people eliminate their debt effectively. He has extensive knowledge of the internal and national debt settlement programs available to help homeowners. For more information about these programs visit http://www.debtsettlerz.com/
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