Debts are a part of our everyday lives. But they have a negative side to it.And when it strikes the entire nation it turns into an economic crisis. Debts leave you with your hands and legs tied .And the worst part, it develops into a habit. But careful money management skills can prevent debts from accumulating .It saves you from worries as well. Financial crisis makes a person both mentally and financially weak. Today US being the most powerful country in the world also cannot escape the clutches of debts.The present debt scenario in the US:
There are approximately 185 million credit card holders with an average of 8 credit cards per user. In 2003 the average balance per family ran up to about $9,340. It was quite a hike from $8,940 in 2002. Interest rates range from 18-25%. Add installments and other secured credits (mortgages, cars, personal loans) to the scenario and what you see is: the average family in the US owes around $85,000 in loans alone,annually.
The present scenario shows that around 40-60 million people are either on the brink of losing control of their finances, or have already crossed the threshold. In the year 2003 alone, the total number of bankruptcies reached a record of more than 1.66 million petitioners, a hike of 5.23% from the previous year.
Each year, millions of US citizens unable to cope with debt situations fall under the debt struck category. Among them, some people try and get themselves debt free. But is immediately filled by a new lot, suffering from the crisis of debts. This seems to be a never ending process in the US today, with more people joining the ranks.Control your debts now!
To bring this debt cycle under control, opt for debt consolidation. It is the most popular way to get rid of your debts. Debt consolidation firms have given result-oriented services to people in debt miseries and brought the smiles back into their lives. With debt consolidation a person is able to repay his debts and become debt free at a minimum cost. This is the fastest, safest and the easiest way to get you debt free.