Credit Card Debt Settlement: A Disadvantage to Honest Borrowers?

Many people find themselves barely able to make minimum payments on their credit cards with no improvement in clear sight. After banks have raised interest rates on revolving consumer accounts to offset losses incurred due to mortgage defaults, most people saw their minimum payments skyrocket to amounts they no longer may afford. Moreover, some banks even went further – they lowered credit limits to amounts below outstanding balances and started penalizing borrowers with over-the-limit fees and default APRs. No wonder America is seeing a record number of defaults and bankruptcies today.What Options Do Honest Payers Have?Most people who saw their interest and minimum payments rise, making them almost impossible to afford, eventually discover that their balances are barely moving down. Consumers begin researching debt consolidation options only to discover those are typically available to borrowers who failed to honor their obligations. Here comes the interesting part: defaulted borrowers are able to save up to 50% off their credit card balances and enjoy lower monthly payments with help of a professional debt consolidation agency when honest paying consumers have to struggle financially trying to pay off full balances with inflated interest rates. This brings a tricky question: to default on purpose and decrease debt burden or to continue trying to cope with minimum payments?To Pay or Not To Pay?Most people would try coping with minimum payments until they discover they no longer are able to afford them or up to the point where their financial situation would improve. Well, given the global state of employment and finances chances of seeing improvement are very questionable. Some people would make an honest try to contact lenders attempting to bring down their monthly payments. Most of them may succeed just to see their balances go up few months down the road, as their payments may not even cover the interest on their credit cards. Very few would default, hoping to settle for less later on. They will surely see their credit score go down after the first late payment.Neither of above scenarios sounds like a winning proposition. In the lending game consumers almost never win. The funny part is that should you default, you surely would be able to save tons of money by utilizing debt consolidation services. So, where is the reward for making timely payments? Moreover, should you default on purpose, temporarily ruin your credit, and save a good chunk of your hard-earned money?Professional Debt Consolidation Agency May Help YouBefore making any wrongful moves, whether it is blowing money on interest charges or damaging your credit on purpose, it is important to seek professional debt consolidation help, unless you are well-versed in areas of consumer credit and personal finance. Even if you are, it is going to be hard to explain to your credit card company how difficult it is for you to pay on time when you had no late payments in the past several years. Therefore, you should get debt consolidation professionals on your side, as they have an in-depth knowledge of how lending and consolidation industries work. They know all ins and outs, and may help you to settle your debts for less without serious damages to your credit.