Franklin Debt Relief
Free Consultation Form
First Name:
Last Name:
Phone No.: --
Email :
Debt Amnt:
State:

ABOUT SSL CERTIFICATES
Debt Relief Solutions
What's New?

Non Profit Debt Relief Scams

Non-profit debt relief companies have become an increasingly popular option in recent years, due to the economic downturn and...

Read More >>

Reputable Debt Consolidation

A lot of people turn to debt relief agencies after their credit score has already been significantly damaged by late...

Read More >>

Follow FDR in
 
   

 

 
  Home About Us Blog Privacy Policy Testimonials Contact Us
 
 
Reduce  Credit Card Debt
Call Today: (877) 274-1260
If you successfully complete our program, it’s possible that you’ll enjoy these benefits:
Settle your debts for less than you owe
  (read here for full details about how much you can expect to save)
Resolve your unsecured debts in 18 to 60 months
  (read here for full details on how long our program lasts)
No Up Front Fees - Don't Pay Till You See Results!
 
 
 
Increasing Minimums  to Reduce Debt
National banks are all regulated by the Office of the Comptroller of the Currency, also known as the OCC. Back in January of 2006, the OCC ordered the national banks to double their minimum payments on credit cards. Prior to then the average credit card minimum payment was only 2 percent of the outstanding balance, making debt reduction next to difficult on high interest credit cards when only paying the minimum. Since far too many consumers weren’t paying substantially more than the minimum payment, the OCC decided to take upon themselves that they do. By asking creditors to double the minimum payments, the OCC was hoping more Americans would actually reduce their debt and payoff the full outstanding balance. To get a better idea of this concept, consider the following:

Scenario 1: 2% minimum payment on $20,000 of credit card debt at 18% interest

Time Till Debt Free: 830 months (more than 69 years)
Total Interest Charges: $58,931

Scenario 2: 4% minimum on $20,000 of credit card debt at 18% interest

Time Till Debt Free: 205 months (approximately 17 years)
Total Interest Charges: $11,915

As evidenced by this example, the financial power of compounding interest is striking. Even though the minimum payment only doubled in this example, the interest costs were reduced to 1/5th of what they would have been otherwise. Unfortunately, the increased minimum payments left far too many consumers in need of debt relief, but on the bright side, it did force many Americans to reduce debt levels and start strategically budgeting on a monthly basis. Until consumers start becoming more knowledgeable about credit and debt issues, government intervention may be necessary to protect our nation’s financial well-being.
 
 
 
 
 

Debt Settlement | Debt Negotiation | Avoid Bankruptcy | Bankruptcy Alternatives | Debt Relief | Debt Reduction | Debt Settlement Company | Debt Settlement Consolidation | Bankruptcy Resources
Debt Consolidation Resources | Debt Settlement Resources | Credit Counseling Resources | Useful Resources
© 2009 Franklin Debt Relief LLC. All Rights Reserved