Debts are Rising and are Ready to Collapse the Financial Markets Around the World.
Debts have reached epidemic proportions and the U.S. economy is on the verge of collapse. Not only are corporations failing at unprecedented rates, American consumers have accrued more than $2 trillion in creditor debts. This figure does not account for the billions due in outstanding mortgage debts.
Experts claim the average American carries $20,000 in outstanding debts. Today, it is common practice for consumers to use credit cards to pay for daily living expenses including gas, utilities, food and clothing. With the current economic chaos, experts predict credit card companies will soon begin reducing credit limits. If this occurs, Americans who use plastic to pay for living expenses will be unable to meet their monthly financial obligations.
The burden of debts is taking a toll on American consumers. Not only are we forced to confront our personal debts, the government is attempting to develop a bail-out rescue plan for Fannie Mae and failing banks. The majority of consumers are beginning to panic as the economy continues to crumble. Fear and worry are rapidly setting in.
The time has come for consumers to take charge of personal debts. While there is no quick-fix, people do have the choice to control their spending. This can be accomplished by developing a budgeting plan. This is of particular importance to individuals who use credit cards to pay for basic necessities.
A simple, yet effective, way to track expenses is to document where your money is going. One of the easiest ways to accomplish this is to carry a small notepad and write down every expenditure. This can be an eye-opening experience for many people. However, tracking expenses can help you determine where your money is going and where you can cut back.
Other options for eliminating debts include credit counseling, debt consolidation, debt settlement and bankruptcy. Personal bankruptcy should be used only when all other debt elimination strategies fail. Bankruptcy has far-reaching effects. Not only does it destroy what is left of your credit, it remains on your credit report for ten years.
Instead of perceiving debts as a chain and ball around your ankle, think of debt elimination as playing a game. Get creative and learn how to reduce spending and slash outstanding debts. Cut back on unnecessary spending, pay off credit cards and sell items you no longer need. With practice you can become the master of your own personal money game.
By learning how to eliminate debts now, you can secure your future and avoid becoming a slave to your employer or the government. The lessons we learn from the current situation with the U.S. economy can be carried over into our personal lives. Eliminating debts and living within our means is the only chance we have for getting back on track and slaying the debt dragon.
Published on October 06, 2008 at 09:18 PM