How the debt ceiling impacts your credit card debt

As most Americans are aware our elected officials are currently evaluating a number of plans aimed at getting our nation’s ballooning debt under control while concurrently raising the debt ceiling.

Without raising the debt ceiling, it is predicted that the US could default on its current debt obligations and see its credit rating plummet from AAA to D status. From a consumer’s standpoint that is like seeing your FICO credit score drop from 750 to 500 overnight. In fact, the Federal Reserve is making plans for this possible scenario.

If the US does default, consumers should expect to see higher interest rates on everything from Credit Cards, mortgage notes, and car loans.

If you already find yourself in a situation where you can not meet your credit card obligations or are struggling to do so, give our counselors a call today at 1-877-722-3328 or email us at [email protected]

No Upfront Fees Debt Settlement

If you are considering debt settlement as an option for debt relief help, it is important that you work with a company that does not charge you any upfront fees.

A recent FTC ruling has made it illegal for most debt relief providers to charge consumers a fee until they begin to see results.

Despite these changes, there are several companies out there attempting to circumvent the rules. Some of these companies are landing in hot water with state regulators and could be at risk of facing further sanctions.

Please note that Pacific Debt is in full compliance with the new FTC rules. What this means to you is that we do not charge any upfront fees, you must authorize all settlements and PDI does not get paid until you see results.

With no upfront fees the benefits to consumers are numerous, including: reduced financial risk, faster time till first settlement and a simple easy to understand fee structure. Full Blog Post.

Sub Prime Credit Card Lending Surges

Have you opened your mail box recently to find a mountain of new credit card offers?

According to a new report from Equifax the banks have seen a surge in new credit card originations over the past year. In fact originations are up over 28% year over years. Perhaps most revealing is this little nugget:

Notable within the data is that lenders continue to expand the subprime category with Feb. 2011 subprime bankcard originations* up by more than 75 percent over Feb. 2010 numbers, and total new subprime bankcard credit up by more than 66 percent.

Wasn’t sub prime lending one of the main drivers behind the great recession of 2008? At any rate we shouldn’t expect anything less from the banks, after all they are in the business of lending money.

If you are currently overwhelmed by credit card debt and are experiencing financial hardship, call us today 1-877-722-3328 and one of our Debt Specialists will review your situation and review all of your options. If you are a good candidate for debt settlement, we will cover all of the benefits and risks; if not, we will try and give you some good advice and point you in the proper direction.

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