There are articles out today about the growing numbers of consumers who are falling behind on their credit card payments and debt. The numbers are alarming, people who are in this situation are finding no relief from the lenders, and things could get worse. There is no doubt that credit was easy to come by for most, and the amount of individual cc debt is at historical numbers. The unfortunate thing is that when they find themselves in this postion the lenders begin to treat them as the enemy. “High Risk”! This is something that the credit card companies helped to create and are equally responsible for the problem.
What consumers can hope for when things go bad are very high interest rates and fees which makes it almost impossible to repay the principal. For most, the downward spiral begins. Millions of people are slipping into this deep well with no possible way of getting out.
Now is the time, before it is to late, when both the credit card companies and the consumers should begin working. First, start with lower interest rates, allowing the consumer the chance to begin to lower the amount of principal debt owed. (Assuming that they can make the adjusted payments.) As it works and the responsible consumer begins the hard task of erasing their debt, they begin to learn how to work within their means and how to work with less credit. They should not be penalized for having some rough times in their lives. I know that it is more complicated than this simplified solution, but it has to start somewhere. However, if the lenders of this country think that the only way they are going to collect their money is by harrassing people, charging them rates that are criminal, or chasing the consumer into a corner with no possible solutions, then this country is in for some extremely tough economic times that have not been seen in over 70 years.
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