Recent statistics have shown that at the end of the year 2009, Americans were in debt of billions of dollars to card companies. The last economic recession has affected the budget of almost every American; hence, hundreds of thousands of credit card debts are delinquent or shortly will be. Non-profit credit assistance can be indispensable to debtors during their financial hardships.

Obama's new administration has offered many solutions to settle the debt of struggling credit debtors. Numerous governmental agencies supply debtors with valuable resources, concerning loan consolidations and settlements, free of charge. Moreover, some federal non-profit organizations can offer free debt counseling services. On top of the list of the most valuable agencies lies The Association of Independent Consumer Credit Counseling Agencies (AICCCAA). Non-profit agencies would help debtors determine the right path for relieving their debts.

Often debtors are faced with one of 3 solutions; consolidation loans, credit card debt modification and bankruptcy. Consolidation of a loan means paying off a debt with the aid of another loan. Consolidation loans are usually easier to get if the debtor has valuable assets. Consolidation loans are usually of lower interest rates than those of the original loan. Sometimes debt consolidation is the right thing to do, especially if the debtor has a low but a rather regular income.

Non-profit credit counseling agencies can help debtors modify their credit debts. Those agencies negotiate with credit companies on behalf of the debtor to reach an agreeable modification plan. Capping the debt interest rate for a while then re-increasing it is one of the available loan modification tactics. Moreover, in special situations a debt counseling agency can reduce the overall debt. Prolongation of the terms of the debt is another way those agencies can utilize to modify credit card debts.

Non-profit agencies can help provide debtors with federal grants to pay off a part or even the whole sum of their debts; however, federal grants are available for limited cases of delinquent credit card debts. On the other hand, sometimes declaring bankruptcy is the right solution for a debtor with piled up credit bills. Solutions are numerous and the right one for a situation might be a wrong one for another; hence, credit counseling is a valuable tool to determine the remedy for piled up credit card bills.