The Consumer Credit Act regulates consumer credit that has contributed much in attaining America’s present financial status. In the U.S, you can purchase anything you want, provided you agree to repay the loan amount with interest. Among the households that hold balances on credit cards, the average amount kept is approximately 2,000 dollars. The amount does not include the added financial burdens of mortgages, rents and car loans. Economists find that Americans owe around 2 trillion dollars in credit card and other debts.
In the UK, credit card issuers were bringing their defaulting customers to court for not paying their debts. On looking into the legalities of the cases it was found that several card issuers did not comply with the Consumer credit Act of 1974 (CCA). Due to this, the cases backfired on the card companies whose non compliant debt agreements were cancelled and customers have been able to walk away without paying a penny.
New York consumer credit counseling services is one of the most appealing, valuable and short-term solutions to anyone who wishes to secure a debt free future. These agencies also help you consolidate your debt, set up a repayment plan, and make arrangements to let you keep part of your income. The agencies also “teach” you to stay out of debt in future situations.
Did you know that there are currently over 400 consumer credit counseling agencies operating in the US alone? If you conduct a search on the internet for consumer credit counseling services you will find a huge number of organisations advertising claiming to be able to save you huge amounts on your unsecured debt and have you debt free within a period of time. The big question is, are their services worth it to the average consumer who is struggling with their debt?
The government has injected billions of dollars into the financial system to get the economy regain its stability. This has assisted a lot in this recession period especially when the economy is moving towards the depression. With this credit reforms, individuals standing on the verge of insolvency are again capable to get back to their normal life by utilizing the advantages of the stimulus bill.
Consumer credit is really nothing new. It existed in an informal fashion in the earlier days, where your neighborhood grocer would give you your requirements and you paid up at a particular time. That was based on his instinct of what you were and how you behaved.
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