Debt Angel - Debt

Debt: A Nation Of Debtors

Categories of Debt

What is consumer debt?

Consumer debt includes credit card debt, mortgages, student loans, and more, and is growing at an alarming rate. Be very alarmed.

What is unsecured debt?

Unsecured debt is consumer debt for which a creditor holds no collateral, such as some credit cards, department store cards, student loans, medical bills, etc.

What is secured debt?

Secured debt is secured, usually with a deposit made by you. Once you've established accountability in making payments, further increases in credit can occur - eventually working up to qualifying for unsecured credit.

How Bad is Household Debt in America?

Consider:

About 43% of American families spend more than they earn each year
Average households now carry about $8,000 in credit card debt. (That's 167% more than the $3,000 average for households in 1990.)
Personal bankruptcies have doubled in the past decade
The average American has 2.7 bank credit cards, 3.8 retail credit cards, and 1.1 debit cards, for a total of 7.6 cards per cardholder
American consumers owed a grand total debt of $8 billion in 2004
On average the typical credit card purchase is 30% higher than if using cash

If you need debt relief you are obviously not alone. There is certainly a growing market for debt consolidation services in this country. In fact, this industry is productive and helping hundreds of thousands of consumers escape the clutches of debt through a variety of program types, including a debt settlement - which requires the need for your having possession of a lump sum of cash with which to pay off the debt at pennies on the dollar through a process of negotiation. Learn more about this approach - or many other debt elimination strategies.

Why Should You Consider Debt Consolidation Services?

Most obviously, to facilitate getting out of debt . But also, to avoid eventual bankruptcy. Living above one's means is never recommendable, although some debt, such as a home mortgage, seems unavoidable. But at least mortgage-related interest expenses are tax-deductible, whereas credit card related interest payments are not.

When Should You Consider Debt Consolidation?

Are you ready for retirement? Without debt management, how will you get out of debt and begin to save and invest money? According to experts, the fastest growing group of indebted consumers are those 65 and over. And more and more people are retiring -- or attempting to retire -- relying on terribly inadequate Social Security payments as their only source of retirement income.

Now that we've given you plenty of bad news to digest, let us give you some good news. You can avoid these bad situations or at least get out of them and get back on track with debt counseling. Do it now so you can be better prepared for your future.