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(PRLEAK ) October 7, 2009 â An increasing number of FICO scores are going bad due to a number of credit card charge-offs. The unemployment situation, the housing crisis, and increasing rates of bankruptcy aren't helping the situation at all, as Americans seem to be falling further into debt. A dramatic rise in the average debt rate from approximately $7,000 in 2007 to $18,000 in 2009 from consumers seeking relief assistance of Consolidated Credit Counseling Services, are clear warnings of a financial crisis. Unpaid bills and credit card delinquencies are on the rise, with the unemployment rate now over 9%.
According to Howard Dvorkin, CPA and founder of Consolidated Credit Counseling Services, Inc., people are struggling to cope with debt and the number of credit card charge-offs will soon match those of mortgage charge-offs. Inflation too is a major contribution to the crisis. Consolidated Credit\'s counselors have noticed that credit card holders prefer to put down the minimum payment rather than clear their debt. This only leads to further problems where the total balance increases at an alarming rate due to the rising interest rates. When this happens consumers stop paying their credit card bills, which later fall into delinquencies.
Consolidated Credit Counseling Services suggests that consumers need to seek assistance if they find themselves in a financial crisis. A reputable credit counseling agency will be able to provide them the much needed assistance. Consolidated Credit advises those that are habitually late in paying their bills, or are borrowing increasingly to immediately seek credit counseling. Those who are dipping into their savings or avoiding medical treatment due to lack of funds should also follow suit. Consumers who have crossed their credit limit and find their bills mounting every month need to take stock of their situation and visit a counseling agency as well. If a large portion of your regular income needs to be put into paying back debt then it is time to seek help. It is possible to prevent credit card delinquency as long as consumers can change their habits. Consumers can visit www.ConsolidatedCredit.org or call on 1-800-728-3632 for further details.
About Consolidated Credit Counseling Services, Inc.
Consolidated Credit Counseling Services is a non-profit organization that provides professional credit counseling and financial education to families throughout the United States for over 16 years.
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