In 2009, Obama agreed upon the Credit Card Act into legislation. Part of the legislation required card businesses to work in conjunction with the National Foundation for Credit Counseling to provide free assistance to customers in danger of delinquency, commonly in the form of advising. In spite of this, credit-constrained consumers simply are not using the resources, per NFCC reports.
Not many chances for free credit card counseling
Only 150,000 U.S. consumers struggling with charge card debt have accessed the nonprofit help to which banks and the NFCC have access, said NFCC spokeswoman Gail Cunningham. The contact number is toll-free and printed on credit card statements. 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.”
The number is likely buried in the recess of public prejudice. Several consumers think the toll-free Credit Card Act number is just a “service” that the charge card business has put together so they can get even more money from them. Some statements haven’t put the number on statements, which is illegal now, states Cunningham.
Less credit card debt last year
A study by Credit Karma indicates that from Jan to December, U.S. customer credit card debt decreased by 8 percent nationally, to an average of $7,404 per person. As much as an 11 percent improvement was shown in eight states including CT, Indiana, Oklahoma, Tennessee, Nevada, California and Colorado. There was a 31 percent improvement shown from 2009 to 2010 in Wisconsin making is the biggest in charge card debt change.
On the other side of the scale, states like Delaware, Iowa, LA, Missouri, Nebraska and New Mexico grew their credit card debt by as much as 6 percent. The Credit Karma Survey states that Mississippi had the biggest increase in charge card debt. It had an 8 percent increase.
Looking for credit card help?
If you need information on non-profits, go to nfcc.org which is the National Foundation for Credit Counseling website. If you just make minimum monthly payments, you will still have a balance on your charge card debt. You can find out what this balance is at the Federal Reserve’s website. You can 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 personal financing and other customer loan goods, 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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