Debt Solution

A confident man believes that there is a solution to every problem and a debt problem is no exception. Quality debt management begins with proper debt help. The debt solution awaits you, just round the corner and getting hold of it is like going through a rehabilitation program from a debt burdened situation towards a debt free land. Keeping the present financial scenario in mind many Americans feel that a permanent debt solution is out of their reach. But in order to reform your financial position the spirit should come from within and not from without.

U.S. consumer debt has reached staggering levels after doubling over the past 10 years. According to the figures from the Federal Reserve Board, consumer debt rate is $1.98 trillion in October 2003, which is a hike from $1.5 trillion three years ago. This figure represents credit card and car loan debt, but excluding mortgages, the debt amount is approximately $18,700 per household in the U.S.

The levels of consumer debt have increased, as millions of people have been jobless. Unlike past recessions, consumers continued to borrow during the last downturn. The prime lending rate set by the Federal Reserve is at a historic low, allowing mortgage rates to drop to their lowest recorded levels. The automobile companies, which have offered zero percent financing for the past two years, have done the same for 2004. But finding a debt solution that is right for you is not just a matter of your income minus your bills. There are many ways to lower your interest rates, consolidate your payments, and work with your creditors to custom tailor-made debt solution according to your requirements. Latest news states that, President Bush says he will sign the bankruptcy reform bill that will require credit counseling before individuals file for personal bankruptcy.

Debt Management Plan is a stepping stone to debt solution. Recent observation shows the benefit of debt management plan as the best tool for debt solution. Clients who successfully completed a DMP felt that it provided a wealth of different benefits, both immediately and long run. Only 15% of clients felt that the ability to payoff their debt was not beneficial for consumer and 45 % felt that the plan did not help stop collection calls. In the long run, almost 32% of the clients felt that the plan helped them balance their budget and almost 41% felt that they learned new budgeting skills. Almost 51% felt that they improved their overall financial status.

In order to have a complete debt solution it is vital to get a clear picture of your debt. It is very important to whom you owe the debt and the amount you owe. Make a budget and look for any unnecessary expenses that can be used for your debt elimination plan. Budgeting is a very important strategy to solve your debt problems.Credit negotiation and debt settlement can also prove beneficial at times.If possible, you might also consider a part-time job. These funds would be dedicated exclusively to your debt solution program. No debt solution is immediate and every debt solution needs deep and strategic moves to be solved forever.

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