Credit card debt has reached an alarming $1.12 trillion in 2024, with delinquency rates rising to 9% in the first quarter. As many consumers struggle to manage their credit card bills, numerous debt relief companies are emerging, some of which may not have the best interests of consumers at heart. It’s crucial to identify potential scams, which often promise quick debt settlement, require upfront fees, or encourage you to stop communication with creditors without proper guidance. To ensure you choose a trustworthy program, research the company’s reputation through state attorney general offices, consumer protection agencies, and the Better Business Bureau. Various debt relief options exist, including credit counseling, debt management plans, debt settlement, debt consolidation loans, and bankruptcy. Additionally, individuals can consider self-directed strategies like the debt snowball or avalanche methods, or even increasing their income through side hustles. Ultimately, understanding the landscape of debt relief is essential for making informed financial decisions.
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