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Consumers Are Repaying Record Amount Of Credit Card Debt

Following the latest records, more people are trying to get their finances in order and take them under control. Thus, customers are now repaying the record sum of credit card debt. Last year, for instance, customers repaid over $122 million to their creditors. It is actually an increase of 3% comparing with 2009 that was record until now.

This year, the numbers go on rising. The repayments increased up to 9.5% during the first quarter comparing with the previous year.

Bankruptcy vs. Debt Settlement

The great Recession really forced a lot of people to file bankruptcy, but some consumers have chosen the path of debt settlement, trying to beef up their personal savings and looking for the ways of debt reduction. Many customers have started to work with their creditors in order to pay back their debt and get relief, some of them even apply for debt consolidation. Anyway, it doesn’t matter what a particular person choose, the aim is one – debt relief.

Debt Management Plan

Customers struggling with credit card debt can get a debt management plan in order to take advantage of reduced payments. Besides, a lot of creditors perform favorable terms of repayment for debtors who enroll in the debt plan, including lower interest rates. Once a customer enrolls, the creditors can also eliminate penalties and late fees.

The average income of consumer enrolled in the debt management plan in 2010 comprised $53,880 – that is an increase of 4% over 2009. Besides, in 2010 every consumer had an average credit card debt of $24,266 – an increase of 4.5% comparing with the previous year.