Older people are suffering from the stress of the recession just as much as younger people. A number of them are not able to work because of physical and mental fragility, but still live in homes with mortgages. Some may have maxed out credit cards, but with no employment and minimal help from Medicare, social security checks, and retirement funds there seems to be little recourse.
There are many options for these people to consider. One is to lower the interest from credit cards. Lowering the interest rate to 10 percent from 30 percent result in an extra 200 dollars a month. To lower the rate, you must call the credit card issuer and make a request. If a bill has been paid on time and there are extenuating financial circumstances, there is a realistic chance that the creditor will lower the rate. It's a good idea to have a payment in mind when you call. It's always better to bring a lower payment plan to the playing field.
Professional intermediaries could be a good help. Credit counseling agencies or attorneys can negotiate a lower interest rate on your behalf.
If you do not already have one, look for an attorney, one with experience in bankruptcy would be best. This way you can get to know all of your options. Bankruptcy can absolve you of much of your debt, but it also affects your credit rating for ten years, rendering you virtually unable to obtain a car, place of residence or even a job in some cases.
One last thought is that it is not a good idea to just walk away from credit card debt. Ignoring the problem would mean collections actions, summons, lawsuits or eventually having the debt turn into taxable income. In today's economy it is crucial that you protect yourself and your assets. When collectors call, it is always wise to handle business.
There are many options for these people to consider. One is to lower the interest from credit cards. Lowering the interest rate to 10 percent from 30 percent result in an extra 200 dollars a month. To lower the rate, you must call the credit card issuer and make a request. If a bill has been paid on time and there are extenuating financial circumstances, there is a realistic chance that the creditor will lower the rate. It's a good idea to have a payment in mind when you call. It's always better to bring a lower payment plan to the playing field.
Professional intermediaries could be a good help. Credit counseling agencies or attorneys can negotiate a lower interest rate on your behalf.
If you do not already have one, look for an attorney, one with experience in bankruptcy would be best. This way you can get to know all of your options. Bankruptcy can absolve you of much of your debt, but it also affects your credit rating for ten years, rendering you virtually unable to obtain a car, place of residence or even a job in some cases.
One last thought is that it is not a good idea to just walk away from credit card debt. Ignoring the problem would mean collections actions, summons, lawsuits or eventually having the debt turn into taxable income. In today's economy it is crucial that you protect yourself and your assets. When collectors call, it is always wise to handle business.
About the Author:
Mallory Megan works for a debt collection agency. Also she composes stories on business and finance, consumer spending and collection agencies. This and other unique content '' articles are available with free reprint rights.
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