Though the economy is starting to recover, many people are still feeling the negative effects. With millions of Americans having lost their job, the average consumer debt rate rose exponentially.
(prHWY.com) January 10, 2012 - Columbus, OH -- Though the economy is starting to recover, many people are still feeling the negative effects. With millions of Americans having lost their job, the average consumer debt rate rose exponentially.
Different news sources revealed statistics that many Americans are defaulting on loans and credit card debt, though many of the statistics from individual studies tend to contradict each other. Regardless, it is no secret that many Americans are struggling with their debt, a major cause of this horrible economy.
Most consumer debt stems from credit card loans. One individual can accumulate more than 25 thousand dollars worth of debt.
Undoubtedly, consumers want something that can help them become debt free, or at least close to it. However, there are no Government funds or grants that directly target consumer debt. Instead, the Government set new laws into place that allow more debt relief companies to legitimate.
These laws were aimed at the debt settlement industry. More precisely, these laws were aimed at credit consolidation companies. Debt settlement and
credit consolidation companies work very closely with lenders and creditors as an ambassador to the consumer. The settlement professional consults with creditors to help find a possible resolve or reword the consumer's debt to become more manageable.
In many cases, the top settlement companies were frequently able to remove up to 5 percent of their clients' total debt.
Of course, there are many settlement companies that are scams and don't follow through with their promises or services. Unfortunately, many consumers fell victim to these companies last year. Soon, debt settlement companies will not be able to collect fees from clients until they are successful at negotiating their client's debt. Once that is reported, the settlement company will then be able to collect fees from their client.
Even with these new laws to help protect them in place, consumers are still encouraged to research every debt consolidation company before they conduct business with them. Total Debt Relief and creditconsolidationcare.com are pretty reputable companies. Still, always compare companies and look for client reviews.
This economy is still on a long road to recovery, but if the National consumer debt rate were to decrease, that would be a big first step towards rebuilding this Nation's prosperity. Moreover, the banks would be able to lend more money to other people who are in desperate need of funds. Hopefully with jobs returning to the market, consumers will find work and realize that they need to stop borrowing and instead start repaying.
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