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The Midas touch to Debt Problems (A-Z
for Debt Solutions)
In the present era where financial breakdowns and debt
problems rein supreme here are some programs which can turn your
nightmares into sunny beginnings. The consumer debts in America have
reached staggering levels after more than doubling over the past 10
years. According to the figures from the Federal Reserve Board, consumer
debt hit $1.98 trillion in October 2003, up from $1.5 trillion three
years ago. There are presently 5 to 7million Americans, who are
financially overstressed. The fourth quarter of 2004 found consumers
exhibiting little confidence in the economy, with unemployment at 5.4
per cent, individual bankruptcy filings at an annual rate of about1.6
million. Americans pay more than $65 billion dollars in interest to
banks annually, and unsecured credit delinquencies are at an all-time
high.
According to American Consumer Credit Counseling, the total U.S. credit
card debt in the first quarter of 2002 was approximately $60 billion.
Credit card debt carried by the average American: $8,562 (Approx.). From
82 million in 1990 to 144 million in 2003— the amount they charged
during that period grew by a much larger percentage: approximately 350
percent, from $338 billion to $1.5 trillion.
With the major options a debtor has today clearing your debts is become
a lot easier.
Debt Consolidation: According to the survey in 2004, thousands of debt
struck people has been benefited by the debt consolidation program. Debt
consolidation programs consolidate your entire loan in a single amount
and your late fees are also deducted. This is the most popular way of
solving your debts in the new millennium. View more info in: (http://www.debtconsolidationcare.com)
Bankruptcy : Data compiled by the Administrative Office of the U.S.
Courts show that the number of bankruptcy filings (dominated by personal
filings) dropped by about 1 percent during the 12 months that ended June
30, 2004, from 1.65 million to 1.63 million. Personal bankruptcy filings
have nearly doubled in the past decade, rising 7.4 percent to more than
1.6 million in the 12 months ending September 30, 2003. “Total
bankruptcy filings remain at historic highs. Chapter7 and Chapter13
Bankruptcy: Statistics released by the administrative office of U.S.
Courts show that a total of 388,864 new non-business bankruptcy filing
in the United States during the quarter ended September 30, 2004,
including 274,196 chapter 7 filings and 114,454 chapter 13 filings.(http://www.debtconsolidationcare.com/avoid-bankruptcy.html)
Debt Settlement: With debt settlement, a third party or you yourself
negotiate with your creditors to reduce the debt amount. Debt Settlement
agencies work with your creditors to reduce your debt balance, sometimes
by as much as 50-75%. Let's say you have racked up $20,000 in unsecured
credit card debts. You owe $10,000 to one credit card Company, $6,000 to
another one, and $4,000 to a third one. You agree to contract for a five
year debt settlement plan where you pay $250 a month to the Debt
settlement company. $250 a month for five years is only $15,000, so
you're saving $5,000 and you'll be debt-free in just five years by
opting Debt Settlement Plan.(http://www.debtconsoldationcare.com/debt-settlement.html)
Debt Management Programs: More than 3 million people contacted a credit
counseling company last year for help in managing debts. Credit
counselors collected about $7 billion in payments as part of
debt-management plans, which typically allow consumers to pay back their
credit cards and other unsecured loans in three to four years at reduced
interest rates. Clients who successfully completed a DMP felt that it
provided a wealth of different benefits, both immediately and long run.
Almost 85% of clients felt that the ability to payoff their debt was
beneficial and almost 55 % felt that the plan helped stop collection
calls. A Total of almost 38% felt that they improved their credit
worthiness and almost 51% felt that they improved their overall
financial status.(http://www.debtconsolidationcare.com/debt-management.html)
Credit Counseling: Credit counseling agencies help you to be debt free,
but basically they don’t consolidate your debt. They will work out
payment plans with lower interest rate and fees for your outstanding
debts. You’ll make one monthly payment to the counseling agency, which
will pay all your creditors. Nearly 9 million people in financial
trouble have some contact with a consumer credit counseling agency each
year.(http://www.debtconsolidationcare.com/credit-counseling.html)
Budgeting: Budgeting is also a very important aspect in the debt
solution plan. Make a budget plan and curtail any unnecessary expense.
In a recent survey of average U.S Budget per household shows that a
household allocates 33% of his total Income in housing, 13% in food, 5%
in apparel and services, 19% in transportation ,5% in Health care ,5% in
entertainment , 9% in personal insurance and pensions ,1% in life
insurance and 10% for other items.(http://www.debtconsolidationcare.com/budget.html
Home Equity Loan: There has been an increasing growth in the home equity
rate in U.S. By the first quarter of 2003, home equity loan growth
outpaced credit card growth by an average of 5.6 percentage points. By
the same quarter in 2004, that figure jumped to 8.4 percent. What's
more, U.S. home equity debt was at a record high of $415 billion for the
second quarter in 2004, which is a 10 percent jump over the previous
quarter, the FDIC reports. If home equity debt keeps increasing at
current levels, it's on pace to break $500 billion by the end of the
year.
These above mentioned methods can lend a Midas touch to all your debt
and financial problems. For deeper insight into debt related matters
view:
http://www.debtconsolidationcare.com/debt-solution.html
http://www.debtconsolidationcare.com/debt-free.html
This article is the property of
www.bestcreditcardsonline.com,
which has been offering credit cards services since 2002.
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