Credit Debt - Is This The Way Forward?

Under Debt Problems?

If you hold a credit card credit debt and especially if you have any concerns over how you will meet future payments, it is time to take stock of your situation and the reality of the fall-out from the global credit crunch. Get a free no-obligation consultation from a credit counselor.

Many people seeking debt help or debt advice, might imagine their first port of call being Debt Consolidation via non-profit debt counseling agencies. And rightly so, these debt services have provided 'life-lines' to many a distressed debtor experiencing a credit debt problem.

Debt help programs by reputable credit debt solution services have not only enabled countless people to consolidate their credit card debts with affordable monthly payments but in many instances at reduced rates of interest, thus bringing much needed credit debt relief. In some cases, this invaluable help with debt advice service - have even managed to negotiate as little as 0% with credit card companies for some debtors.

But at a time when the prevailing credit crunch is seeing a knee- jerk reaction from some credit card companies and where many people need help with debt - perhaps more than ever, the credit debt problem seem poised to worsen. It would seem that some lenders' fears over further debt losses in the current climate, has led to previous concessions being stripped away and there appears to be a general clamping down on credit card credit borrowing. Some of these restrictions include:

  • Drastically slashed credit limits

  • Increased rate of rejection for new credit card credit applications

  • Increased interest rate charges

  • Refusal by some credit card companies to lower rates for those needing    to consolidate debt - (credit debt relief strategy)

    What The Experts Are Saying About Credit Card Debt

    The picture for credit card debt - Uk and abroad, couldn't look any less bleak, especially in light of the findings that nearly one in eight Britons have at least four credit cards, with 28% of people applying for a new credit card over the past 12 months ( report that 'around 13% of people have four or more credit cards, with 3% having five cards and 4% having more than five'. This suggests that credit card consumers are juggling with debts by transferring balances from card to card. While this strategy is perfectly fine if people are making full use of 0% transfer deals for credit debt reduction, it is most certainly not a good position to be in if they are struggling to make ends meet.

    Yet, at a time when a number of research and surveys shows the true picture of spiralling credit card credit debt and mortgage equity release debt, it becomes all the more worrying where over-reliance on credit for every-day essentials such as food, bills etc., has become the norm for some people.

    Those who have eradicated their credit card debts by releasing equity from their homes might well have earned a much needed resprieve. However, for those individuals who have not only released equity to clear some of their debts, only to find they are still holding substantial credit card debts, there may be very little options open to them.

    At a time when nearly every expert seem to be predicting the credit crunch and ensuing credit crisis is going to escalate, what possible salvation can there be for people who are in desperate need of help with debts? There is hope! Learn from more than 110000 people how they got out of debt.

    Help with debt also comes by way of a growing online lending revolution. Say hello to the online money lending clubs.

    Online Money Lending Clubs: The Way Forward For Help With Debt?

    These clubs have been established with the aim of getting people who are in a position to lend, lending to those who need to borrow money or debt loans. While these on-line money lending clubs provide a means of borrowing at perhaps even a lower rate of interest than might be secured through other traditional routes, it should not be seen as a means of borrowing to get further into debt. In any event, the more preferential rates will always apply to borrowers who are not perceived as being adverse 'risk'.

    Interest rates can vary from 8 to 20 per cent depending on the individual's credit score, payment history, outstanding debts and risk. When you compare this with the average credit card interest rates of say, 13 - 15 per cent or higher, this option start to look more attractive than being held to ransome by some credit card companies.

    Subprime Loans

    On the issue of sub-prime loans, While some on line lending clubs will not accept subprime liabilities, expect the ones that do, to reflect this risk in higher rates of interest charged on loans.

    On line lending clubs would seem to offer much better rates of interest than is currently being charged by credit card companies etc., This might well be the only available 'life-line' left for people who are in a no-win situation with credit card credit debt. On-line money lending clubs can provide the means of sensible borrowing that can be repaid at an affordable level with a view to eliminating troublesome debt over time.

    What's In It For The Money Lenders?

    You may well question how on-line money lending clubs will benefit from charging less interest than other traditional lenders. Well, let's just say that even an 8 percent return in interest on a lender's investment will represent a very healthy profit than they might otherwise get if they invested their monies in other traditional ways.

    If it is good enough for billionaire and entrepreneur - Richard Branson who has chosen to venture into this area - 'Virgin Money', then might it not be a good enough credit debt solution to reduce debt?

    Other on-line money lenders include: and

    In this climate of an uncertain, weakening world economy and with credit card lenders clamping down on the very people whom they have in the past seduced with tempting enticements into credit card debt, credit consumers are and may increasingly turn their attention to this new form of online borrowing as the way forward to debt reduction.

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