Learn the truth about consumer debt elimination and debt reduction. Start by reducing credit card debt, follow the best strategies for debt elimination, get out of debt, Today!
A debt snowball has been steadily growing over the last decade. In fact, fall of 2006 saw a first in recorded history; it was the first time that Americans owe more than they make. Since about 1990, the average household debt was $3,550.
By the end of 2008, the debt snowball had grown 350% to a whopping $7,520. This revelation has a direct impact on you the consumer if you are one of the ones who owes on their credit cards.
What you may not realize is that a out of control debt snowball can have an impact on the economy. Basic economics tells us that since consumers make up two thirds of the economy, and as those consumers continue to spend the economy remains healthy.
In order to keep the economy in this inflated state, it is imperative that the consumer continue to spend. The nudge that consumers need to spend and obtain more credit - thus encouraging them to live beyond their means - has come from the businesses, other consumers and, yes, the federal government.
Now consumer debt, is not necessarily something that any of these groups did on purpose. Back to economics class, if you have an economy that is enjoying inflation; when the reality of overspending hits and the spending is halted, things will happen.
Prices will come down because people can no longer buy things and an old economic enemy will descend upon the Federal government: deflation.
Because we have come this far with debt many Americans are living far beyond their means, to suddenly adopt an attitude for debt-free living could have an impact on the economy and it would almost certainly incur some degree on deflation.
However, if Americans committed to paying off bills in a methodical manner the decline would be more gradual and would have the jolt that is almost certainly impending if things do not change. No, it is highly unlikely that we will have another Great Depression, but we could still see a deflationary spiral of sorts.
But this is not a - Cut Up your Credit Cards and Save the Economy - push. What this is is a wake up call that something has to give. True, the more we spend the higher prices we will have to pay, but to a degree that is a good thing. After all, it helps to keep the economy moving.
Consumer debt is a vicious cycle: the more people spend, the more things cost, the more things cost, the more money people need which means that if the need is great enough then people will spend money that they don't have.
Debt repair is a much needed service currently. As families work to repair their credit their consumer debt may decrease, but it is not realistic to believe that spending will see a reduction anytime soon.
The American family has grown so accustomed to spending - and spending A LOT - that it is not likely that they will reduce their spending. Consumer debt is a habit now.
However, it is advisable that you pay off your bills using a debt elimination program. Pay off your credit cards and try to get down to just one card that you use. Only use that one card in emergencies or for special purchases. If nothing else, it will give you peace of mind.
Help with consumer debt elimination. Employ the help of a debt adviser if you need some help getting a handle on your bills. They can help you before you get into trouble and guide you in the management of your finances, and they can help you if you get in over your head.
You can find consumer financial advisers through credit counseling services, attorneys or other non profit organizations that are committed to aiding people who are in financial trouble. You may choose to eliminate your bills on your own, but if the task seems too much to do yourself, always know that there is help out there.
Even if you are in debt now, you can go from debt to wealth with Transforming Debt Into Wealth by John Cummuta some discipline and determination. This is not only beneficial to you and your family, but it is also a way for you to do your part in reducing consumer debt.
You can make your own contribution to the stability of the economy. Debt can overwhelm you so it is important that you get a handle on it as soon as you possibly can, find and use a good debt elimination program. Yes, debt is destructive when you look at your own situation and at the big picture.
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