Drug testing

Help to Get Out of Debt

Debt Help is the stepping stone to debt elimination and financial recovery. Debt help analysis guides you to save thousands of dollars in interest charges. Consolidation of your credit card debts and other unsecured bills will allow you to get out of debt as quickly as possible, save money on interest and late fees, stop creditor harassment, save your good credit rating or begin immediately to repair bad credit or negatives on your credit report.

In a recent survey it was reported that almost 58% clients vouched for Debt Management Plan as the best way to settle their debts. Another 42% client had filed bankruptcy since dropping off a Debt Management Plan or DMP.

Debt Management plans can reduce your monthly payments, interest charges, penalties and some times even the repayment period. Even if bankruptcy seems like your only solution, it may not be the right debt help solution and may cost you for many years to come. The loss of a job, divorce, credit card spending and family medical emergencies among other life style matters can cause negative money issues. Statistics released by the administrative office of U.S. Courts show that a total of 388,864 new non-business bankruptcy filing in the United States during the quarter, ended on September 30, 2004. This included 274,196 chapter 7 filings and 114,454 chapter 13 filings.

Most economists consider a ratio of unsecured debt to annual income of 40-50% percent or more, as being a strong indicator to bankruptcy. This is taken as a '?thumb rule' in most of the cases. So in order to protect himself from such crisis one should keep his unsecured debt to annual income ratio lower than 40 to 50%. For example if someone has an annual income of $5000, he should keep his annual debt minimum $2000 to $2500 in order to avoid his bankruptcy.

36% or less: This is a healthy debt load to carry for most people. 37%-42%: Not bad, but starts to restructure your debt now before you get into real trouble.

43%-49%: Financial difficulties are likely to occur unless you take immediate action.

50% or more: Get professional help from debt counselor to aggressively reduce debt.

You should also control from having a large amount of unpaid outstanding credit or using more than 80% of your available credit (which causes a high debt to income ratio).

It is better to have a debt free life without having a savings rather than maintaining debts along with savings. The reason is simple. As the return on short term investment i.e. savings is lower than the interest payable on accumulated debt, it is always advisable to pay the debt first rather than go for the short term investment. Because a repayment of single debt instantaneously may save a lot of money in future. In other word, One dollar payment is better than one dollar saving.

From the Consumer Debt so published by Federal Reserve Statistical Release, it is found that each and every year total consumer debt (both revolving and non-revolving) has an increasing trend. In 2000 and 2001, total consumer debt has a rising trend by 11.42% and 8.04% with respect to the year 1999.

However, in 2002 and 2003, total consumer debt increased to 4.45% and 4.52% respectively, at a decreasing rate with respect to just previous year's total consumer debt. As there is no specific trend in total consumer debt we may conclude that in 2005 also, the total consumer debt will have an increasing trend of 4.49% which signifies that at the end of 2005 total consumer debt will reach about $2109.85 Billion.

For better insight in this topic please view:

http://www.debtconsolidationcare.com/getoutofdebt.html
http://www.debtconsolidationcare.com/debt-solution.html

Janet Williams is a contributing writer to http://www.debtconsolidationcare.com/ and is currently working on a special section in the site called do it yourself where you can eliminate your debts and become debt free...

limousine chicago service
In The News:

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

Fast Track Out of Debt

You go to the mail box and scan - a... Read More

Bankruptcy As An Option

If your financial worries are preventing you from sleeping at... Read More

Debt Management Systems

What is a debt management system, and when do you... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

Bankruptcy Your Best Bet?

Filing bankruptcy is a common practice among the U.S. Over... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

Debt Consolidation Versus Debt Negotiation

Debt consolidation versus debt negotiation are two options that are... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

Dont Let The Good Times Bury You

It is vital to get rid of debt while things... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

Bad Credit Home Loan To Get You Out Of Debt

A "bad credit home loan" can help you climb your... Read More

Debt Settlement

What is debt settlement?Debt Settlement is a process to settle... Read More

A History of Money and Banking Secrets That Banks Dont Want Published

A History of Money and TradeTo start with a history... Read More

Bankruptcy - Your Fresh Start

Most American consumers are living too close to the edge.... Read More

What is Debt Settlement and How Does it Work?

Debt settlement involves negotiating with a creditor or creditors to... Read More

Debt Elimination 1

If you have multiple debts, you may well be wishing... Read More

Debt Relief -- Why Most Programs Have A 75% Failure Rate

Debt consolidation, equity loans, credit counseling, debt management plans, even... Read More

Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the... Read More

Tips To Take Control Of Debt Collection

Yes, debt collection tips can help. You may think you... Read More

How To Get Out Of Debt

If you have found yourself in a position where you... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More