Debt Consolidation

March 30, 2009 by  
Filed under Family Finances, Money, Money Vault

2009 ushered in an increase in consumer debt after three consecutive months of decline in the fourth quarter of last year.  But, for many families struggling with job loss, declining wages or housing values, there is a need to find options to relieve the pressures of mounting debt.

©istockphoto.com/DNY59

©istockphoto.com/DNY59

In a Marist Poll conducted in March 2009, 21% of Americans report they have looked into consolidating or refinancing their debt or outstanding loans.  Interestingly, nearly three in ten households with a family income of $100,000 or more have explored this avenue for cutting costs.  This includes 28% of men under the age of 45 and approximately one-quarter of families with children. About one in seven (15%) Americans have tried to negotiate with their credit card company to lower their monthly interest rates or finance charges.  Americans with a family income of less than $50,000 a year are more likely than their higher earning counterparts to make an attempt to lower their credit card costs in this way.  This personal finance tactic knows few age bounds although Americans 60 years of age or older are less likely to do so.

Looked Into Refinancing Debt Table

Negotiated with Credit Company Table

Marist Poll Methodology

Related Links:

http://www.federalreserve.gov/releases/g19/hist/cc_hist_sa.html

http://www.bls.gov/

http://geofred.stlouisfed.org/ http://www.nfcc.org/

The Marist Poll’s Barbara Carvalho explains how to simplify debt while cutting costs:

Comments

11 Responses to “Debt Consolidation”

  1. Jane on June 24th, 2009 4:51 pm

    An interesting video there and some common tips on sorting out a debt situation that a growing number of people have in current times. From my onw point of view, I believe that the majority of bankers and financial institutions are to blame for giving people the amount of credit they have – 100% mortgage loans for example.

    People, however, tend to leave debt consolisation (and even thinking about their financial responsibilities) until it’s too late, which is something that society needs to educate people to do and to spot the early warning signs, such as a few mentioned by Barbara in the video.

    From my own experience and one who buried his head in the sand and tried to believe ‘everything is okay’ with the financial trouble I was in was the fact that I didn’t recognise when I was going deeper and deeper into the mountain of debt that I had.

    I glad to say that I have now learned my lesson, but I know I would have benefitted more from acting early and actually going ahead with some of the advice in the video. Thank you.

  2. Frederick Obeng on November 3rd, 2009 10:01 am

    A very insightful video Barbara. You are spot on about consolidating credit car loans into one or two. This definitely helps in better management of spending and makes keeping up with repayments easier. People usually spend without really knowing how much debt they are accumulating.

    This video really gives a good tip about consolidation loans. They do tend to be more expensive in the long run but I wouldn’t really mind that. See my extensive commentary about this video at http://www.astudentloandebt.com/student-loans-blog

  3. Womack on December 19th, 2009 3:42 pm

    I learned something new today. Thanks for the great info. 2 Thumbs up ;-)

  4. Bill on January 5th, 2010 5:24 pm

    You know its easy to point the finger as to who is to blame, whether consumer or lender, the fact is that if you are in debt and you are stuck, it truly is a nasty place to be in. I think high schools need some more education in the as so many people seem to get into problems with it.

  5. GeniusRates on April 7th, 2010 10:23 pm

    Great Article! –

    With the economy down and job loss growing, it is no wonder that we are having this problem. But I do believe that the economy is just adjusting back and when it does that it becomes very painful for all of us to scale back from the life style that we had become accustom to.

    Thank you for the video tips!

  6. Charles Davis on May 26th, 2010 4:20 am

    Debt Consolidation is really important for the future security of your personal finances..’,

  7. Rexx Hogan on August 23rd, 2010 1:20 am

    I would agree that the banks bear much of the blame for encouraging debt–especially since they target people who are missing payments because they know these people will pay large amounts in fees.

    That said, I would also agree that more education in the risks and effects of debt, and training in controlling and reducing it would also be great. I appreciate any site that calls attention to the problem.

    T

  8. Madison Brown on August 31st, 2010 4:08 am

    debt conslodiations is indeed very necessary to have a very good credit record:`,

  9. Mobile Hard Drive on December 12th, 2010 8:50 am

    i would love to have some debt consolidation and have financial freedom in the years to come ~*~

  10. lkesh on January 5th, 2011 10:45 am

    Debt relief is the forgiveness or partial forgiveness of a debt. In terms of personal reliefs this has been seen to be an escalating problem many place world.

  11. olympic london on July 29th, 2012 8:29 am

    I second the VGA adapter compatibility request. As an instructor, it would be very valuable to project images on the screen.

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