Need Debt Help

10 Warning Signs you Need Debt Help
need debt help

American consumers have nearly .5 trillion of outstanding debt, according to the Federal Reserve’s Consumer Credit report. Unfortunately, the probability you account for a portion of that debt is high. Use the following 10 warning signs of excessive debt to know if you need financial guidance.

You have been denied new credit. Lenders use your credit rating to determine the likelihood you will repay the credit they extend to you. If you have a large amount of debt, they are likely to reject your application or charge a high-interest rate.
You always make the minimum payments on your credit card debt. Your credit card debt will take decades to repay if you only make minimum payments, which is, typically, around two to four percent of your outstanding balance. For example, a ,000 debt at 20 percent interest will take over 26 years to repay if you only make the minimum payment each month.
You have maxed-out one or more credit cards. One of the most apparent signs you have too much debt is when you reach your credit limit. Spending maximums are set by creditors to stop you from accumulating more debt than you can repay; however, you can quickly accrue overwhelming debt by maxing-out several credit cards.

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You ask friends and family for money to cover your credit card debt. Borrowing money from friends and family indicates you have overspent to the point you need assistance. Rather than jeopardizing your relationships, a viable solution is debt consolidation or debt settlement.
You lease because you cannot find financing to buy. If the only possible way you can afford a home or car is to lease, then you have too much credit card debt. Leasing should be an option, not a necessity. It also reflects your credit rating, which suffers when you have excessive debt.
You have three or more credit cards. The more credit cards you obtain, the easier it is for you to accumulate insurmountable debt. The solution to a maxed-out credit card is to repay the debt, not get another credit card.
You have stopped allocating money into a savings account. The first thing to go when you amass debt is usually your savings. You can tell your debt is at a dangerous level when you suspend your plans for the future to make a credit card payment.
You hide your spending from your spouse and family. One of the top five reasons people get divorced is money problems. You will quickly lose the trust of your partner if you hide expenditures from them and they later discover your dishonesty.
You don’t know how much total debt you have. When debt starts piling up, a common reaction is to ignore it. Your apathy prevents you from realizing the full extent of your debt and causes future hardships.
You have seriously considered bankruptcy. Bankruptcy should be a last resort. If you have contemplated financial insolvency, then you are ready to explore debt-relief alternatives.

These are only a few indicators that your debt is a major problem. You should consider debt consolidation or debt settlement if your financial situation matches these warning signs. Debt-relief is available, but you must take the first step and get help when the evidence points toward extreme debt.

Rowing families need debt help

www.clearstart.co.uk – Millions of families’ relationships are deteriorating due to debt problems, new research has shown. One million families feel as though they are arguing more now, even though the recession is officially over, according to new figures from the Clydesdale and Yorkshire Banks. They also discovered that a further two million families were feeling under a great deal of financial strain each and every day. Professor Kevin Durkin, of the University of Strathclyde’s Department of Psychology, commented “Recessions may last only a few years in boom-bust economies like Britain’s, but the impact on vulnerable families can be much more enduring.” Many of these families could help their relationships by seeking a debt solution. People with debts of a few thousand pounds should look into a debt management plan, which could help them bring down the amount they pay in monthly repayments. Those with debts of over £15000 should consider getting an Individual Voluntary Arrangement (IVA), which can help creditors at bay and help them become debt free in five years. To qualify for an IVA, you need to have at least three creditors and at least 75 per cent of them must agree to you taking it on. The banks’ figures also revealed that 340000 families also needed to welcome grown-up children back to the family home, as they had levels of debt which didn’t allow them to live away any longer. On top of this, a further 513000 families had young adults who were ready to fly the …
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need debt help question by Jeff: Do we need to pass a law banning “interest only” loans and other stay-in-debt-forever setups?
If you can’t afford the payments on a 30-year fixed, then the government needs to stop mortgage companies from “helping” these people with “interest-only” loans and “adjustable rate” mortgages. When one person defaults, it’s his problem. But when a majority default, it’s the economy’s problem.

need debt help best answer:

Answer by madgooner
Perhaps it would be better to spend money on educating people to take on a level of debt they can afford. Markets work best when left to their own devices.