debt relief

Consumer Debt is Now Higher than During 2008 Financial Crisis

Written by adminJuly 2, 2019

It may not be fully understood what causes the recession, but usually high levels of consumer debt play a major role. If we take on a lot of debt, we do so because the economy allows us to. Either things are going really great, as they appear to be doing so currently record levels of low unemployment, or things are going well and people need to take on debt to get through it.

Right now, maybe both of these situations are in play. Consider that were just now coming out of the recession that hit back in 2008. It took us nearly an entire decade to get back on our feet. During that time, people had no choice but to take out debt in order to survive. They went back to school, took up credit cards, and got behind on their bills and had to use loans to pay for them.

And while these situations are in flux, the total US consumer debt has surpassed $14 trillion early in 2019. This is higher than the $13 trillion limit back in 2008. That much household debt helped send the global economy into a tailspin. We’re talking about auto loan debt, credit card debt, student loan debt, and mortgage debt, with many Americans balancing all four.

All of this data is according to Marquette Associates Senior research analyst Ben Mohr. In 2008 it was the housing market that really pushed economy into a major recession. This time, if such a thing happens, it will be because of student loan debt which is sitting a notable increase among economists and strategists.

Rising Consumer Debt

Right now, we may begin to see larger amounts of consumer debt. Read time in the stock market is at or near record highs. Housing market is doing really well, the Federal Reserve is looking at reducing interest rates, and the job market is better than it’s ever been before. When things are good like this, it starts to get some economists worried about the spending habits of Americans which can throw this entire system into a lurch.

Eventually the debt becomes too much for Americans to handle. The bubble pops. Interest rates start rising and the cost of living starts to push beyond what most Americans can handle. But were not there yet, as the Marquette analyst says defaulting on this debt is still quite low, meaning Americans and investors alike aren’t being overwhelmed.

In fact, consumer delinquency on loans are very near historic lows. Back in 2008, the increase in loan delinquencies revealed that there was a major problem in crack was beginning to form under the weight of so much consumer debt. That’s not happening today, so not too many people are worried that we’re in the midst of a new recession, but it won’t take too much, especially as the weight of debt gets heavier and cracks begin to form.

Were even finding that Americans who default on their first mortgage loans are much lower than before the 2008 recession. Were currently living in a time with historically low interest rates, increased job numbers, and steadily increasing salaries. Hopefully we can continue down this path of American prosperity.

Written by adminFebruary 23, 2017

Credit & Debt Settlement

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Most of us think that love will conquer all… we might not say it out loud, but inside we do things that we know are not in our best interest for the sake of love and happily-ever-after… In other words, we put ourselves at risk and go all in for love.

That’s exactly what Britney did when she and her ex got an apartment together and he asked her to put all the bills in her name.

“I was crushed. I never thought he’d leave me for someone new, especially not with all HIS bills and bad credit… I thought he loved me, and that we were in this together… for the long haul.”

“I have a great job that I love, and I work really hard. My credit has always been excellent, and when I got with John, I never even thought about his credit.

Our relationship was fun and he was so sweet… After a year, we decided to get a small apartment together, so we could start saving money to get married.

Of course when he said the bills should go in my name because my credit is better than his, I thought nothing of it.

We shared the bills and were supposed to share in the wedding savings too, but he had to pay some other things off before he could start putting money toward the wedding fund – he said this would give us a clean, debt free slate to start off with.

I worked and saved, and worked and saved, and things just kept coming up… His car broke down, and he even had a couple really old bills that creditors began hounding him about.

One day he asked me if I’d open a new credit card to pay them off, and then he could just pay me. It seemed perfect… until he lost his job.

Not only was I paying for all of our living expenses, but now I had racked up more credit card bills too. Eventually I had to start making arrangements with creditors so that I could keep the lights on and make sure we had food…

That’s when the fighting began…

I guess we were both just really stressed. Late payments started getting marked on my credit: 30, 60 and 90 days late and one even went to collections.

I got a second job, and got caught up… Things seemed to be getting better, and he finally got a great job. The only problem was, I now had all these late payments and collections on my credit report so my score had dropped to 457!

Then one day I came home from work and he was gone. He sent me a text that said he thinks it’s best for him to stay with a friend so that he doesn’t cost me any more money and that we “clearly needed space”.

Well, I’m sure you know, my best friend found out that his “friend” was more than a friend, and that he’d been seeing her for a few months. I was devastated.

…And furious, but I was stuck.

Because of my crappy credit, I could no longer qualify for an apartment on my own, so I ended up moving back home with my parents. They were remodeling my room, so I had to sleep on the couch.

I was so embarrassed. While my ex-fiancé was livin’ it up with his new girlfriend, I was sleeping on a couch at my parents, with horrible credit. Who in their right mind would even want to date me?

I knew I had to do something about my credit, so I did what I always do, and started googling for advice. That was a can of worms! I found so many ads and tips and “instructions”… it was overwhelming, but I was determined to get my credit back so I tried whatever I could find.

As you can probably guess, my credit score still wasn’t budging. One day when I wasn’t expecting it, this quiz showed up on my Facebook newsfeed (of all places). It said I should find out what my #2 credit killer was and why my score won’t raise. I didn’t even know I had a #2 credit killer! So I checked it out.

It talked about how this lady named Ali made this quiz to help her clients…. I was skeptical at first, but nothing else had worked, and it was a FREE quiz, so I basically had nothing to lose, and took it.

That’s when everything changed…

It was the best decision ever. I seriously thought I had tried everything, but it turns out that I was doing the wrong things to raise my score all along. Some weird thing I had never even considered was what was actually keeping it low!

The quiz gave me some pretty simple steps to follow, and sure enough, my score skyrocketed! It’s been 5 ½ months now, and my score has already risen by 237 points. I wish that I found the quiz sooner; it would have saved me months of doing the wrong things and tons of stress.

And, guess what? I just signed for my own apartment. I feel like I’m on top of the world again!

Looking back, there are a lot of things that made this experience horrible, and the salt in my wound was being left with no options because of my bad credit score.

After all these months of struggle, trying to get back on feet, I’m on a mission to help keep others from experiencing this nightmare and spread the word.

I looked it up, and according to research over 68% of Americans are stuck with bad credit. Most of them struggle for years trying to figure out how to fix it while it costs them thousands in dollars and missed opportunities!

Don’t let yourself be a victim to this.

Take this quick quiz and find out what your #2 Credit Killer is. You’ll be surprised at what’s really affecting your score and at how quickly you can raise it.

We all need and deserve good credit. So, don’t miss your opportunity to get this info for FREE! You owe it to yourself to take the quiz and see what’s really causing your score to be lower than it should be.

P.S. My best friend Sarah, the one I told you about above, took the quiz too. She raised her score by 181 and bought herself a BMW lol! Click here to discover what is your #2 credit killer.

Written by adminJanuary 4, 2017

Credit & Debt Settlement

*This is an advertorial*

You see it coming. Every time you look at yet another of your credit card statements and can only afford to make the minimum payments, you are aware that it is time. Balances are mounting and with that the awareness that it is essential to get control of additional spending and increasing debt due to minimum payments and compounding interest. Do you want to start making late payments, incur late fees and negatively impact credit scores? Climb out of the hole and make headway on outstanding balances with a feasible debt management plan.

What Happens When You Consolidate?

A debt management plan, or DMP, reduces high interest rates and creates a more suitable monthly payment schedule for your situation. It is a voluntary agreement between individuals, counselors and creditors. Individuals can begin to make headway on principal balances and gain control over their finances.

Unsecured debt is consolidated, regardless of credit score, in a debt management plan. Types of unsecured debt that are eligible for inclusion are:

Credit cards;
Gas cards;
Department or specialty cards; and instances of
Payday loans; and
Unpaid medical bills.

Secured loans such as mortgages, home equity loans, auto loans and general student loans cannot be applied. Collection debt may be able to be included in certain instances. While on the plan, all credit cards will be closed and no new credit lines may be opened.

How Do Credit Counselors Work For You?

A credit counselor will spend time (45-90 minutes), to review your situation, including your finances and budget. They will offer advice on managing sending and reducing debt, and a new budget will be created for the client that takes their unique situation into account. When individuals continue with a debt management plan, credit counselors take additional steps to intervene with creditors for clients.

A new payment schedule will be agreed upon by all parties. Payments are based on the total amount of debt and your budget. Counselors contact creditors on your behalf to agree on reduced interest rates and an adjusted payment schedule. These changes to payment expectations make a significant difference to how quickly and how easy balances are paid off while reducing the amount necessary from individual budgets to meet acceptable payments.

A credit counseling team transforms how individuals think about and handle their finances. Signing up for a debt management plan provides a means of:

Ongoing support. Support staff are always available to help current client with any concerns or questions.
Housing counseling. Clients that are homeowners can speak with HUD-certified housing counselors for additional guidance.
Regular progress reports. Credit counselors prepare monthly progress reports to demonstrate payment distribution and remaining balances.
Continuing education. There are a number of free courses and seminars available on a range of subjects, such as understanding credit scores and reports, managing credit, financial planning, avoiding foreclosure and more.
Payment processing. Counselors accept deposits electronically and disburse them according on a fixed schedule for timely payments.
An intermediary with creditors. Credit counselors make communication easier and speak with either clients or creditors for either party.
Budgeting assistance. We partner with clients to establish a workable budget and help them during the life of the plan. Additional budgeting courses help clients fine-tune their budgets to changing needs.

Get the support you need to manage your finances today.

Is There a Negative Impact on Your Credit Score?

A debt management plan can actually improve your credit score. Individuals that make regular payments on time and complete the program, see their credit scores remain neutral or increase. How does this happen when you are paying less overall? Each creditor has accepted the new payment schedule and rates, therefore no negative impact will be seen on your credit scores when the terms are fulfilled. During this process, you eliminate your unsecured debt and build a positive track record of payments. These are two major factors when credit scores are calculated.

How Does a Debt Management Plan Quickly Pay Down Debt?

There are a number of benefits derived from a debt management plan. Individuals that enroll in the program:

Make a single monthly payment with a reduced interest rate.
Have a larger percentage of each payment applied to the principal of the balance.
Can see a savings of 30 to 50 percent of what would be paid on balances before consolidation with high interest rates.

Experts tailor a program that meets your needs and make it possible for you to pay off outstanding balances faster than without consolidation. More money also stays in your wallet or is used towards the principal with a debt management program, as interest rates are significantly lower.

Turn to experts to help you resolve escalating debt and develop a debt management plan with practical steps that reduce the amount owed on credit cards. Pay off your debt without lowering your credit score and gain financial literacy with a debt management plan.

SEE IF YOU QUALIFY NOW »

Written by adminJanuary 4, 2017

Credit & Debt Settlement

If you are overrun with debt, you may want to just shut off your phone and throw out the bills without looking. Unfortunately, ignoring the problem tends to multiply your troubles over time. Ignored debt amounts continue to grow due to interest, fees and other charges added to your accounts. Eventually, you will find yourself without the tools needed to achieve debt relief and start over on your financial journey. To save yourself from this situation, immediately respond to the constant barrage of bills by seeking out debt settlement assistance.

Money Savings

When your accounts go delinquent, the original creditors prepare to hand them off to a collection company. When the creditors go ahead with this process, they tend to sell the accounts for pennies on the dollar. If you seek debt settlement assistance before this happens, your credit counselor can negotiate a similar rate on your behalf. If the creditor and credit counselor reach an agreement, you may be able to pay a portion of the owed amount in exchange for a paid in full designation on your credit report.

Credit Preservation

As your debts remain delinquent, your credit score steadily drops toward the poor rating. If you elect to file bankruptcy, rather than negotiate and pay off your debts, your credit score will drop even further. Unpaid debts and bankruptcy continue to impact your credit score until the reports drop off in about seven years. By choosing debt settlement services, you can protect your credit score from dropping to an all-time low. With the negotiated repayment plan, you will make mutually acceptable, timely payments that keep your debts from reducing your credit scores.

Peace of Mind

Facing high debt amounts can have a negative impact on your peace of mind and mental health status. In fact, studies show that even low credit card debt can weigh heavy on the mind and increase the risk of developing depression. The main reason for high stress is that credit card bills and other unsecured debts lack the benefits of long term financial investments, such as mortgages and business loans. To reduce your stress levels, you can leave the debt management to credit counseling professionals. With every dollar you dedicate to your repayment plan, you will experience a stress reduction due to your focus on building a healthy financial future.

Knowledge Support

Debt settlement professionals will strive to impart the knowledge you need to regain control of your finances for good. You can learn more about budget creation, debt resolution and saving strategies during the debt settlement process. Your credit counselors look at your unique financial situation to help you develop a plan that will work for your income level and debt requirements. Although the initial counseling session may provide you with the framework you need to succeed, you can also attend follow up appointments to gain advanced knowledge on the finer nuances of financial management.

Obtaining Settlement Assistance

Debt settlement professionals can lead you through the resolution process for all of your delinquent accounts. The credit counselors negotiate with the creditors on your behalf to find a suitable repayment plan or payoff amount for each debt on the list. These professionals utilize inside market information to net you the best results every time. As a result, you will likely end up saving money, preserving your credit, reducing stress and gaining knowledge by choosing debt settlement services. With the credit counseling knowledge gained from the process, you can fine tune your finances in an attempt to remain debt free well into the future.

SEE IF YOU QUALIFY NOW »

Written by adminJanuary 4, 2017

Credit & Debt Settlement

We can agree on this. Credit cards are a great way to purchase items when ready cash in not available. However, it becomes far too easy to whip out a credit card for routine and spontaneous purchases and be surprised when balances are far more than expected. Cash is simply easier to manage and when it’s gone, it’s gone. Credit cards allow individuals to spend more than what is practical for their budget and can negatively impact finances and more. When massive balances loom overhead and it’s a struggle to make minimum payments, it may be time to take matters firmly in hand and settle. Learn more about credit card debt and if debt settlement is the right choice for you. Call 866-703-4945 for help today!

What to Know about Credit Cards

Credit cards are a convenient method of payment and debt can be managed with larger and faster payments. Be aware that:

Credit cards are useful for essential items or emergencies but make sure to adhere to a short repayment time plan. Be willing to pay down the balance quickly and on time. Credit cards interest rates can be 18 percent or more and quickly add to your balance. Miss a payment and incur penalty fees or see a rise in your rate. Only buy what you can afford to pay off in a short time frame.
Credit card debt can be a blessing and a curse. Credit card debt that is less than 35 percent of the available credit limit and is paid consistently on time, can build and maintain a positive credit history and establish high credit scores over time. Skipped payments can result in creditors reporting 30-day delinquencies to major credit agencies with a noticeable ding to your credit score. Poor credit scores and skipped payments are an issue and can be a problem when individuals want to apply for a home mortgage loan or personal loans.
You can ask for help. Many credit card companies are willing to work out new payment arrangements but it is not obligatory. You can speak to a lender directly and if that fails you can work with a credit counselor that will intervene on your behalf and develop a feasible repayment plan.
Creditors can sue for non-payment of credit card debt and if they are successful, you can be powerless against garnished wages or the removal of your nonexempt property and assets.

If you are having difficulty managing spending and paying down outstanding debt, and contacting lenders directly has not helped, look to a credit counseling team to work with you to develop a repayment plan for your unique situation.

Is It Time to Settle

It is possible to settle outstanding debt with lump sum payments. Borrowers need to:

Be a few months behind in payments;
Have tried and failed other repayment options;
Know that settlement can lower credit scores;
Understand that forgiven debt can be reported as taxable income and those that settle may have to pay taxes on it;
Realize that creditors do not have an obligation to settle;
Stop making direct payments to creditors. This can lower credit scores and add fees and penalties.

Research repayment options and debt settle companies. Credit counseling is one way to avert a financial crisis. Call 866-703-4945 for help today!

*This is an advertorial*

SEE IF YOU QUALIFY NOW »

I was so embarrassed. While my ex-fiancé was livin’ it up with his new girlfriend, I was sleeping on a couch at my parents, with horrible credit. Who in their right mind would even want to date me?

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