Debt Consolidation Research Paper

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

Whatever circumstances may have plunged you into some uncomfortable level of debt, you have two major choices to consider: How are you going to deal with the challenges to your financial stability? And how will you handle its effects on your emotional life? The way you answer these questions will set the tone for the health and well-being of your bank account, your personal life, and your family’s future. A financial counselor or a mental health counselor can help you chart a path to a healthier

Ever since a consumer could purchase goods or services with a plastic card, there has been complications. Credit cards have a few positives, but the risks heavily outweigh the good. Americans owe a combined 12 trillion dollars’ worth of credit card debt (John Oliver, 2016). The average household in the United Sates owes around $5,700 (valuepenguin.com). Debt should not be something new for American consumers since they already deal with student loan, automobile, and mortgage debt. Since credit card debt is so prevalent, debt buyers and other loan rewarding companies have become a mean for paying off debt for some consumers. The Federal Trade Commission only provides information regarding debt and also strategies on how to pay off debt. The government only has a few programs that helps a particular group help combat debt. Many American consumers can only turn to themselves, debt buyers, and various agencies to help erase the burdens credit card debt.

If you are looking for a way to get out of your debt quickly, you need more than willpower and minimum payments. You need a consistent debt-busting strategy. A good debt-busting strategy does more than pay off your debt. It increases both your ability and confidence to pay off your debt while also reinforcing healthy financial habits to prevent problems in the future.

Are you currently suffering from debt, and not sure what to do about it? It’s possible to consolidate your debts to take back control of them. Those debts with high interest rates can be consolidated with a lender that has a lower interest rate, making them more manageable to pay back. Before you jump into debt consolidation, know not to make these 3 mistakes.

Here is the greatest debt reduction story ever told, and I'm proud/ not proud to say that it's mine. I had been living quite comfortably as a teenager, I depended on my mom and didn't need to pay for things. As soon as I got in college I realized that that wasn't the best way to live. It got me into the habit of spending money that I didn't really have. So that's how I ended up having $10,000 in credit card debt. After I was practically broke and couldn't pay for anything, I called my mom (like any other hopeless broke college student) and she told me that it was my fault and to figure it out on my own, so that's what I was determined to do.

Well as of now I am only in debts with two credit card carriers. I have and outstanding with $2,500.00 and the other is $1,500.00. This debt is just another bill and more stress in my life.

And before you know it, if you are not careful or have budget your money you could get back into debt again by spending on those credit cards you fully paid off. Some discipline is required if you plan to consolidate debt and reduce your monthly payments.

Negotiate as much as possible to get the best possible deal. Call up your credit card firm and ask them if they can give you an interest rate which is fixed if you cancel the card itself. You wont know what they are willing to offer unless you contact them.How did you end up in debt? Was it something you never saw coming? Did it happen outside of your control? Do you want to know how you can fix it no matter how it began? The steps you need to take to use debt consolidation to fix your financial faux pas can be found below. It is always better to try to repair your debts without bringing on additional debt, such as a debt consolidation loan. If you can figure out ways to pay off what you owe, even if it is with the help of a credit counselor,

It is important to reduce high interest debt in a timely fashion because the faster you pay your debt off you pay more on the principal and less interest. When you pay your minimum payment you are paying more interest. By making bigger payments you pay less interest.

Personal debt in the United States in quickly on the rise, leaving more and more Americans struggling with ever rising high interest debts. If you are one of the millions of Americans living paycheck to paycheck, there is help available to you. A debt consolidation loan may be just the help you need to reduce your monthly bills and begin working toward total and permanent debt elimination.

There are some cases where consolidating debt isn't really worth it. If you have debts with low interest rates, it's probably in your best interest to keep paying them. Putting them in one place will extend the payment period, meaning you'll pay much more in interest over the long term.

The first step in debt consolidation is approaching your bank or credit union to see if they can help you. Mortgage interest rates are always lower compared to loan interest rates. It is important to consider consolidating your debt with your mortgage. Your bank or credit union will tell you if you qualify for debt consolidation. Most banks and credit unions can only lend to people 10% of there net worth. Banks will most likely lend you money if you have security for the loan. Assets serve as security. They can increase the loan that you qualify for.

Paying your financial obligations is quite difficult, especially when you have accumulated more than what you can afford to pay off. Having the discipline and the drive to be capable of paying off your debts is very important. The following are a few tips that you will have to take note of if you want to pay off credit card debt.

Another way how you can handle debt is with credit counseling. Credit counseling is a process that involves offering education to consumers about how to avoid incurring debts that can not be repaid through establishing an debt management budget or plan (Miranda, 2012). “Reputable credit counselors can help you create a money management plan and a debt pay down plan, as well as provide free resources and workshops related to money management”(Miranda, 2012). If you find a trustworthy credit counselor and commit yourself to the process, credit counseling can be a very positive experience. As long as you are open and honest about your credit, the counselor can help you in a more beneficial way