Increase in Unemployment, Increase in Debt
Debt has been something many Americans have been dealing with their entire life. Whether it’s from medical bills, increased credit card spending, or simply living paycheck to paycheck. This is one thing that is of huge importance to have under control, not only to be debt free, but for your credit’s health as well.
The U.S. national debt hit a record level and exceeded $22 trillion in February 2019. This year, with businesses shut down and many people laid off or fired, there has been an increase unemployed family. Since unemployment and debt have a parallel agenda, it is safe to assume that even with the government stipends from our 2018 tax filings, we are still seeing a rise in debt.
Rise of Household Debt
In 2019 Household debt surged, marking the biggest annual increase since just before the financial crisis in 2008, according the New York Federal Reserve. Those of the minority black and Latino class seem to be suffering the most. To top this off, economists said in a blog post that credit cards have again surpassed student loans as the most common form of initial credit history among young borrowers, following several years after the crisis when student loans were higher. 2020 is forecasted to be double these numbers.
Fortunately, there are debt relief companies out there that help consumers lower or get rid of their debt. They mostly deal with credit card debt, however there are some out there that deal with any type of debt.
Steps to Financial Freedom:
- List out all your debt accounts and total them up in preparation for your consultation with the debt relief company.
- During your consultation, it is important to provide the full breakdown.
- You will most likely be offered a low APR Personal Loan in order to consolidate all your debt into one account.
- They will issue out a payment plan that you can afford towards this account. In the meantime, the debt program’s agents will try and barter the rates down on most of your debt, in order to lower the amount that you owe.
- Once this loan is fully paid off you will be debt free. Although your credit may take a huge hit initially, in the long run, it will start rising to a Good or Excellent standing, so long as you keep your debt down.