With our economy in recession, the market that trades in credit card asset-backed securities face mounting stress as more and more consumers fail to meet their payment deadlines and end up needing credit card help.

As the saying goes, with every cloud comes a silver lining. Last Thursday, December 18, 2008, regulators voted to restrict certain controversial credit card practices. However, this news of credit card relief won’t take effect for another year and a half—July 1, 2010 to be exact.

The new regulation was approved by the Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union Administration. It prohibits banks from certain credit card practices such as applying interest payments that maximize penalties, and also forces lenders to be more understandable and clear about their billing practices.

Ben Bernanke, the Federal Reserve Chairman, believes that these new credit card rules will help consumers a lot. The consumers will be able to fix their credit card settlement easily, mainly because of fairer terms and easier-to-read tables in their monthly statements.

There are many changes once the credit card relief regulations come into effect, as promised. Among these are the following:

- The end of double-cycle billing. This means consumers who carry a balance won’t get hit with retroactive interest on their previous month’s bill any more. Also, credit card companies won’t be able to raise the interest rates on pre-existing balances unless the payment is more than 30 days overdue.

- Consumers get a reasonable amount of time to make their payments. This is big credit card help for those who used to end up paying more because they were constantly overdue. Also, payments will be applied to higher-rate balances first, so interest penalties and fees will be reduced.

- Your credit card settlement will be much easier to understand. It will clearly list important information such as time of day that a payment is due. Any changes to accounts will be boldfaced or listed separately.

- No more universal defaults. This was a policy that allowed credit card companies to increase the interest rate on one card if a customer missed a payment on another card.

But hard times bring with it complications, such as higher prices, job lay-offs, lower purchasing power of the dollar, that prevent people with credit card debt from earning enough money and allow for paying off some of that debt. In the end, people end up with more debt than they hoped to have. Being in a situation like this can only make things turn for the worse.

That’s when credit card consolidation comes to the picture. With it, you can fix your blown-up, multiplied credit card debt. How does it work?

When you sign up for a credit card consolidation program at your consolidation company of choice, you then allow them to merge your various high-interest credit card balances into a single account with zero percent or low interest rate.

This way, instead of paying off several bills with different rates each month, you only pay one bill at a greatly reduced interest rate, thus making your debt payments more affordable and easier to keep up with.

This is also very helpful to people who tend to forget their bills or lose track of which ones are already due. Remember that credit card debts incur a late penalty fee, so being able to deal with only one consolidated debt is a huge convenience and money-saver.

How do you know you need credit card debt consolidation or a balance transfer? It’s when you realize that you’re starting to dip into your living allowance just to pay off your credit card bills. It’s also when your salary or income can no longer suffice even for your basic necessities. (Start living below your means, too.)

Granted, credit card consolidation is a temporary solution to lower your monthly payments, but doing so allows you to pay off your credit card debts little by little, step by step.

Having multiple credit cards is fine. However, having many cards means you know how to use your greater spending power sensibly and responsibly. Never spend more than what you can later pay for so you won’t find yourself in financial trouble. But if ever you find yourself in that situation, there’s always credit card consolidation companies that can help.

That’s probably the reason why the debt collection industry is creating new strategies, such as offshore call centers, computer analysis and automated dialers that would almost fully ensure that their consumers’ payments are collected. They are also claiming that partial payments are now more welcome than ever before. Unfortunately, some in the industry are still using harassment techniques that got them in trouble with regulators and courts before.

Fortunately, there are ways to avoid debt collectors’ harassment. For one, make sure to budget and monitor your expenses. Living on a budget may seem a tad desperate and hard to deal with, but it actually can be adjusted to. Knowing the difference between what you want and what you need can be a big help—prioritize your necessities and save your money for later. Or better, save your money for paying off your loans!

Another tip is to always keep your balances low. Never live above your means nor spend more than you earn. Even if you have a high credit limit, don’t even think about going near it. Keeping your balances low will not only let you achieve a higher credit score, but will also prevent you from getting over the limit fees.

Try to eliminate identity theft by disposing of your unwanted credit card solicitations. Throw them into the recycling bin, and if possible should shred them first.

The most obvious tip, however, that people either avoid or are unaware of is: communicate with your lenders. When you feel that financial trouble is going to hit you, it’s okay talk to your lenders. Unexpected difficulties such as job loss or even family trouble could lead to delayed payments, and a lot of lenders can offer help in various ways, such as special programs when their consumer is in a challenging period.

Just put these tips to action, and you’ll be able to avoid harassment from debt collectors in no time.

And it’s not your usual, everyday griping. The people who answered the survey also reported experiencing health issues ranging from headaches to heart attacks.

The AP-AOL Health Poll interviewed a sample of 1,002 adults nationwide (except in Alaska and Hawaii) between March 24 to April 3. Among those polled, those who considered themselves to be experiencing a high level of debt-related stress were most likely to complain of physical and mental ailments, compared to those who felt only low-level stress caused by debt.

Consider these findings:
- More than half (51 percent) of those polled with a high level of debt stress said they’ve had back problems and muscle tension; in contrast, only 31 percent of those with low debt stress said they suffer from these.
- 44 percent with high debt stress reported migraine problems and headaches, but only 4 percent with low-stress did.
- 39 percent highly stressed with their debt had insomnia or sleep trouble, compared to only 17 percent of those with low debt stress.
- 29 percent with high debt stress suffered from severe anxiety; only 4 percent of the low-stressed had the same problem.
- 27 percent with high debt stress had ulcers or digestive tract problems compared to 8 percent among those with low debt stress.
- 23 percent of the highly stressed went through severe depression, compared to only 4 percent low-stressed who experienced the same.
- Only 6 percent of those highly-stressed with their debt have had heart attacks, but this figure is still double to that of those who reported low-level stress.

How bad is America’s consumer debt problem? The economic benchmark company Moody, in its Economy.com website, pegs the average American debt to $127,000 per household and says that Americans allot 19.3 percent of their after-tax income to pay off their financial obligations. No wonder people are so stressed out.

The economic recession isn’t helping, either. As the prices of fuel, food and other commodities go through the ceiling, Americans find out that their dollar is buying even less. Add to this gloomy scenario the threat of unemployment. So despite their unpaid existing debts, people borrow even more just to make ends meet.

According to the Federal Reserve, consumer credit rose to $2.56 trillion in May, a $15.3 billion increase in total consumer borrowing, more than double than was forecast in March. Compare this with an increase of $5.2 billion in February, to a total of $6.5 billion. These figures don’t even include home-equity loans and other loans secured by real estate.

As the country reels from an economic crisis that show no signs of ending yet, expect a lot more borrowing from cash-strapped Americans—and a great deal more debt stress.

Do you find yourself worrying over your debt too much? Is your debt starting to become a literal pain in the neck? Don’t wait for your debt problem to be a health problem, too!

Sign up for our free consultation now and get started on your way to a debt-free, healthier life!

According to market studies, the average American has about $7,000 worth of credit card debt at any given time. And we consider this against the fact that the average American also has to deal with other loans—car loans, student loans, and home loans—one thing becomes clear: excessive consumer debt has become a major problem facing many Americans.

Often, too much debt is a result of credit mismanagement. Credit cards, for instance, can give a false sense of wealth and let one get carried away. It’s very tempting to engage in a shopping spree when you can easily reach into your wallet, wave your shiny plastic, and say, “Swipe it” or “Charge it.” A raised credit limit also becomes an even greater incentive to purchase more. No wonder, many people find themselves waking up one day to an overwhelming credit card debt.

Fortunately, there is still hope. One strategy you can use to manage your debt is to sign up for a debt consolidation service.

In debt consolidation, an agency negotiates with your current creditors for you so you can pay off your debt under more favorable terms. They can request that your credit interest rates be reduced, or in some cases, be waived altogether. This helps ease the pressure on you so you could intelligently budget your finances and plan long-term on how to rid yourself of debt at your own pace.