In 2009, consumers in need of credit card help were blessed with the United States Credit Card Act. Part of the law is that credit card issuers and the National Foundation for Credit Counseling must work together to provide free credit counseling to delinquent consumers. While they’ve held up their end of the bargain, recent NFCC studies have found that customers simply are not taking advantage, reports Bankrate.
Free credit counseling, fallen by the wayside
Nonprofit help is hardly ever used by United States consumers even though the NFCC and banks have access to it. NFCC spokeswoman Gail Cunningham explained that only 150,000 United States consumers that have had issues dealing with debt have accessed it. You are able to call toll-free the contact number. It can be found on credit card statements that you get. As credit card debt still weighs heavily on the average, recession-weary American, the lack of initiative is troubling.
“I certainly think one of the reasons for the low response rate from consumers could be attributed to a lack of prominence,” said Cunningham. “Perhaps the number is buried somewhere.”
There is so much public prejudice. This is where the number can be buried at. Several consumers think the toll-free Credit Card Act number is just a “service” that the credit card business has put together so they can get even more money from them. Cunningham reports the number has not even been put on some statements. This is now illegal though.
Fewer people got credit card debt in 2010
United States customer charge card debt decreased an average of $7,404 per person, an 8 percent increase, from Jan to December, according to a Credit Karma report. As much as an 11 percent improvement was shown in eight states including Connecticut, Indiana, Oklahoma, TN, Nevada, California and Colorado. Wisconsin made the biggest dent in credit card debt, slashing and burning through the credit jungle for a 31-percent improvement over 2009.
New Mexico, Nebraska, Missouri, Louisiana, Iowa and Delaware all increased credit card debt though. It went up as much as 6 percent in all states. The Credit Karma Survey states that Mississippi had the biggest increase in credit card debt. It had an 8 percent increase.
Want help with credit card debt?
The National Foundation for Credit Counseling site is where you can find non-profits to help near you. Go to nfcc.org to find the information. The Federal Reserve’s website also has a free calculator with which you can calculate how much you’ll owe if you only make the minimum monthly payment on your charge card. You are able to go to the Android Market for tools as well. The Personal Financial Calculator should be downloaded. Or, if you are seeking to compare overdraft APRs of private loans and other customer loan products, have a look at Personal Money Network’s “Loan Overdraft Calculator,” connected below.
Articles cited
Android Market
market.android.com/details?id=com.adworkz.pms.mobile.tools.calculators_2001.com
Bankrate
bankrate.com/financing/credit-cards/nfcc-credit-card-help-unused/
Federal Reserve
federalreserve.gov/creditcardcalculator/
Personal Money Store
tools.personalmoneystore.com/free-payday-loan-calculator/
National Foundation for Credit Counseling
nfcc.org/
Obama signed the Credit Card Act. Are you using its programs?
youtube.com/watch?v=OVFj2p8JeKo
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