Customers in need of charge card help, pay attention

In 2009, customers in need of credit card help were endowed with the U.S. Credit Card Act. Part of the legislation is that credit card issuers and the National Foundation for Credit Counseling must work together to provide free credit counseling to delinquent consumers. In spite of this, credit-constrained customers simply aren’t using the resources, per NFCC reports.

Getting credit card counseling for free unlikely now

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. You can call toll-free the contact number. It could be found on credit card statements that you get. 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.”

Within the recesses of public prejudice may be where that number is buried. Experts believe that many customers who see the toll-free Credit Card Act number on their credit card statement may think it’s yet another “service” from the large, bad charge card company to take their money. However, Cunningham has observed the number has been absent from some statements, which would be a violation of legislation.

In 2010, fewer individuals wanted charge card debt for things

U.S. customer credit card debt decreased an average of $7,404 per person, an 8 percent increase, from January to Dec., according to a Credit Karma report. As much as an 11 percent improvement was shown in eight states including CT, Indiana, Oklahoma, Tennessee, Nevada, California and Colorado. The biggest change in credit card debt was shown in Wisconsin. It showed, from 2009 to 2010, a 31 percent improvement in credit card debt.

There was at least a 6 percent increase in credit card debt though in states for instance New Mexico, Delaware, Iowa, LA, Missouri and Nebraska. Mississippi was the biggest loser in the Credit Karma Survey, with 8 percent growth.

Credit cards help for everybody

Visit the National Foundation for Credit Counseling site at nfcc.org for the information on non-profits near you that can help. The Federal Reserve’s site also has a free calculator with which you can calculate how much you’ll owe if you only make the minimum monthly payment on your credit card. The Personal Financial Calculator is accessible at the Android Market if you want to put it on your phone. Or, should you be looking to compare overdraft APRs of personal financing and other consumer loan products, take a look at Personal Money Network’s “Loan Overdraft Calculator,” connected below.

Citations

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