It’s very easy to get into financial trouble today with the popularity of owning a home, vehicle and having credit cards. There are more people than ever who have more debt than they may afford. Debt consolidation is a good way to get out financial difficulty. Debt consolidation is combining all of the debt you have, including loans and credit cards, into one large group with a single payment that is extended over a longer time period.

The most positive ramification of debt consolidation is that it gives you a new beginning to being able to manage your debt and finances. This is just one beneift; there are so many more from debt consolidation:

1. Making just one payment. There will be just one payment for all of your debt. There will no longer be the need to keep up with multiple debts and creditors.

2. Less stress. A lot of debt can be mentally and financially stressful. C

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Finding it hard to repay gambling losses? Paying off or eliminating gambling debt can be achieved more quickly with the appropriate debt free plan.

Eliminating gambling debt may appear to be the priority, but the first step any problem gambler should take is getting help to come to terms with his or her addiction. Gambling losses regularly occur very quickly, but paying off debt takes far longer. Unless that person is in control of his addiction, even the best debt free plan is destined to failure. The correct approach is to seek advice from Gamblers Anonymous before finding a way to clear debt from gambling.

Growth in Numbers Eliminating Gambling Debt by Filing Bankruptcy

Only a small percentage of the population are pathological gamblers. However, the growth in casinos, online gambling sites, race tracks, slot machines and lotteries has meant that more people are now exposed to it.

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If you neglect getting your monthly debt under control long enough, then you will eventually find yourself at the point where you will need professional assistance in order to meet your obligations. When it comes to taking care of your debt there are many options out there, and two of the options available to you are debt settlement and debt consolidation. In order to determine which of the two is more desirable, it is first necessary to understand them both and know what they both entail.

Debt settlement is basically exactly what it sounds like. You would hire a debt settlement firm and they would negotiate with your creditors and ask your creditors to accept a payoff amount that is less than what you actually owe. Once the agreement is reached, you then begin paying back the reduced amount on a monthly basis.

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Debt and finance advisers know it best, debt consolidation is not an easy task for someone that owes a huge amount of money to a credit company or lending institution.

The fact that you have more bills to pay than you actually can right now, should not be the reason for you to think that everyone who is genuinely trying to help you is actually trying to take advantage of your situation. There are many legit businesses that offer more than just the services to help the customer clean up his/her credit and move on. They will also work as an advising support that will offer you their expertise and knowledge so you may succeed all the way.

It’s simple to recognize which company is genuine and which one is not right away. T

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Credit cards offer the convenience for purchasing goods and services. It is basically a credit facility in which you need to pay back all the debts later. As the transaction is done in an instance, you may not realize how much you have charged and in time, you may find yourself in a deep financial hole. It has happened to so many people now that it is smart for them to start thinking of credit debt elimination.

For this to happen, they must take some essential steps. Firstly, they must make sure that they will not get into further debts. This can be done by going through a thorough financial plan. They must at least use cash to pay off the basic necessities like food and utilities. When they keep doing this steps for a few month, eventually their financial conditions will turn around.

If these folks keep pumping up their credit card balances, it will not be long before they find that the balances are nearly maxed out. Read more…

The current economic situation is putting more and more Americans under pressure. Surveys show that about 10 million Americans are experiencing difficulties meeting their debt monthly payments. Mortgage loans, card debts and auto loans are amongst the commonest personal loans that Americans resort to. Credit card debt assistance has been more demanded by Americans today than it ever was a couple of years ago.

Are you struggling to pay your credit card bills? Have you missed your due date of credit card payment? Well, if you do, don’t worry as there are many helpful ways to deal with this situation. Temporary solutions can be of great help. Many card companies offer their clients a “Payment Holiday” which enables them to postpone payments for a month. On the other hand, it is sometimes useful to contact your card company and request a decrease in your monthly interest rates or even a lower monthly payment. Read more…

The process of getting into debt is simple for most consumers. From credit cards to auto loans, student loans to splurge purchases, a mountain of debt can grow quickly. Unfortunately, getting out of debt can be a daunting challenge for consumers across the country. Depending on your personal financial situation, there is a debt relief strategy that can work for you. From a self-management program to enlisting the services of a debt management professional, these programs can help you gradually eliminate the role of debt on your daily life.

Debt consolidation

A popular choice for many consumers, debt consolidation combines all your debts into a single loan. You will still owe the same amount, but instead of several monthly bills you will have the convenience of only paying one bill a month. Your creditors will be satisfied, and your new lender – your debt consolidator – will consolidate all your debts into one loan. You

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It is true that Americans with overdue debts will typically be subject to a number of retributions. Collection letters, phone calls, unfavorable credit scores and a chance to wind up in court are examples of punishments for non-compliance.

However, a new trend that is growing is debtors suing debt collectors first. Any violation of the Fair Debt Collection Practices Act can be valid reason alone to take a collector to court. It might be true that in a declining economy suing a debt collection agency instead of paying off what you owe may be your only choice. There were 8,347 consumer lawsuits filed against collection companies in 2009. That’s a 55 percent increase over 2009 and double that number filed in 2007.

Some consumers are plaintiffs suing for the first time, who suddenly find themselves unable to pay debts, and they feel that they have been wronged by aggressive collectors. Read more…

The latest statistics from the Federal Reserve indicate that the total amount of consumer debt outstanding remained fairly steady in 2009.  In case you’re wondering the total amount of consumer debt in the United States stands at nearly $2.5 trillion dollars – and based on the latest Census statistics, that works out to be nearly $8,100 in debt for every man, woman and child that lives here in the US.

And if you’re saying to yourself – that that statistic doesn’t seem quite so bad – just keep this in mind:  We’re talking about consumer credit – which does not include debt secured by real estate.  So if you’re thinking that number has mortgage values in it, it doesn’t.

Consumer Credit Breakdown

So just how does that debt breakdown in terms of credit cards and /or the purchase of a new automobile?  Well, roughly 36% of all consumer debt – as of November 2009 - of this type is what is termed revolving credit, which is defined as credit which is repeatedly available as periodic repayments are made.  The most common type of revolving credit would be credit card debt.

The other 64% of that debt is derived from loans that are not revolving in nature.  This type of debt would include automobile loans, student loans, and loans on boats, trailers or even vacations.  In fact, these statistics also tell us that the average new car loan is over $30,400 and the loan to value ratio is 91%.  That means new car buyers are using down payments of around 9% of the car’s purchase price.

Credit Card Debt

According to information gathered by the US Census bureau, there were approximately 173 million credit card holders in the United States in 2006 and that number is projected to grow to 181 million Americans by 2010.  These same Americans own approximately 1.5 billion cards – an average of nearly nine credit cards issued per credit card holder.

In addition, Americans charged approximately $1,950 billion dollars to their credit cards in 2006 – that’s just over $11,300 in charges per cardholder.  This information includes all credit card types including bank cards, phone cars, as well as credit cards issued by oil companies and retail store.

This data also tells us that Americans carried approximately $886 billion in credit card debt and that number is expected to grow to a projected $1,177 billion by the year 2010.  This works out to over $5,100 in credit card debt per cardholder (not household) and that number is expected to increase to over $6,500 by 2010.

You can find more information on this topic in our article on credit card debt statistics.

Bankruptcy and Consumer Debt

In January 2008, the American Bankers Associated reported the percentage of credit card accounts that were 30 or more days past due dipped slightly to 4.18% in the fourth quarter of 2007.  That’s good news because it means more consumers are paying their bills on time.

But even with this decline in late payments, credit card delinquencies were at the third highest level on record.  To James Chessen, ABA’s chief economist, that can signal financial distress and he attributes this distress to the rise in gasoline prices as well as rising interest rates.

Bankruptcy Filings in 2005 / 2006

Despite the Fed’s feelings about consumer credit, the bankruptcy law changes that were instituted last fall resulted in a rush of indebted consumers to file for bankruptcy in 2005.  That rush pushed personal bankruptcy filings to their highest levels on record – with estimates in excess of 2 million filings.

In fact, according to Lundquist Consulting, a research company based in California, there were 200,732 bankruptcy filings in the second quarter of 2007.  That’s an increase of over 11.6% from the filings recorded in the first quarter of 2007.  On an annualized basis, and using Census statistics on the number of households that mean nearly one in every 35 households in the United States filed for bankruptcy in 2007.

So that leaves it up to you to think about this question – Is the growth of consumer debt really a concern in America?

Source: http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/