- “Chicago residents are now more likely to miss a credit card payment than residents of any other major city, including New York, Los Angeles, Dallas or Miami”, according to the S&P/Experian Consumer Credit Default Indices.
- Chicago residents have the highest default rate in the nation on credit cards, home loans, and car loans.
- Here at Golden Financial Services, a record number of Chicago residents have been approved for debt relief in 2018.
Why does Chicago have such a big problem with credit card debt? The reason that Chicago residents are struggling to pay their credit card debt, is not because they did anything wrong, it’s because of financial hardship and high-interest balances.
Plus, the average credit score in Chicago is 648, compared to the national average of 699. Consumers in Chicago have lower credit scores on average, compared to the rest of the nation.
A low credit score will lead to creditors issuing loans and credit cards with subprime rates. Subprime is another word for “second chance”. Credit card companies feel that if they issue a loan to someone who has under a 710 credit score, that they’re giving that person a second chance and because of that they can charge outrageous interest rates.
The City of Chicago is filled with subprime borrowers who are being overcharged in interest and who can only afford to pay minimum monthly payments or less. When paying only minimum monthly payments on high-interest accounts, balances may never get paid off, but that’s what the banks want because that’s how they maximize profit.
Top that off, with the fact that the Federal Reserve just raised credit card interest rates in 2018, not once but three times – and more rate-hikes are predicted to come over the next year, according to the CME FedWatch Tool.
These are the reasons why the City of Chicago is drowning in credit card debt right now.
Chicago debt reduction services can rescue you from high credit card balances and unsecured debt. You can be granted one low monthly payment and become debt free in 18-42 months.
Chicago Debt Relief, Settlement, and Consolidation Programs can resolve just about any type of unsecured debt, including credit cards, third-party debt collection accounts, medical bills, bank loans and student loans.
There are different programs – designed to deal with different circumstances. Today we will take a look at a few examples of the various types of programs and actual client results obtained.
Here are 3 examples of how debt relief programs can help you resolve credit card debt:
$10,000 of credit card debt with an average interest rate of 30%
- a monthly payment of $250 per month can resolve your debt in about 24 months
$20,000 of credit card debt
- a monthly payment of $301.50 per month can resolve your debt in about 24 months
$30,000 of credit card debt
- a monthly payment of $412.61 per month can resolve your debt in about 36 months
Chicago, Illinois – Debt Settlement Client Example (illustrating a savings of $2,740.39 on a Citibank Credit Card that was sold to a third-party debt collection company)
As seen in this example, Chicago debt settlement programs can reduce the balance on an unsecured debt. However, debt settlement does have negative consequences as well – which you can learn about by reading this page next.
Chicago, Illinois – Debt Validation Client Example
With debt validation – a consumer has the legal right to challenge any debt – where the debt collection company must now provide verification and proof that the debt is valid and legally collectible. If the debt collection company can’t provide all of the necessary documentation and accurate information that federal laws require them to maintain – then you don’t have to pay it. On top of that – if a debt is invalidated the debt collection company cannot report it to the credit bureaus. Click here to learn more about debt validation in the state of Illinois. Chicago debt validation may be the least expensive route to deal with your debt and credit issues.
Student Loan Debt Consolidation in Chicago, Illinois
Student loan debt consolidation is a public option. Visit this page next to learn more about student loan consolidation.
Golden Financial Services – A Chicago, Illinois Debt Relief, Consolidation and Settlement Company
After 13 years in business and maintaining an A+ BBB rating – Golden Financial Services has extremely effective debt relief programs. Chicago residents can feel confident in knowing that Golden Financial Services will provide honest and accurate debt relief information. If there is a chance of providing assistance to a consumer with high unsecured debt issues – Golden Financial Services is the Chicago debt relief company to do so!