Americans Are Cutting Debt - But Why?
While I was hanging around on Yahoo Finance watching my stock portfolio bottom out, I did notice an article that looked encouraging at first glance. It said that US consumer debt has dropped a bit for the first time on record. i.e. for the first time, since they started tracking consumer debt, it has dropped. Now this should be good news that Americans are finally realizing that the future pain that debt gives them is not worth the quick satisfaction of a 50 inch TV set or something.
Is Declining US Debt Always Good News?
However, are Americans cutting debt by choice. It is hard to believe right now, especially in the holiday season. Actually, credit card companies are putting the squeeze on consumers, and falling debt levels may not be the consumer’s choice, but the fact that their credit limits have been sharply dropped.
And even though consumer debt has gone down by less than 1 percentage point, Americans net worth has declined by over 4 percent. Mortgage debt has also decreased, but it may be because many Americans have given up on their mortgages, and others cannot get a loan in this tight credit market.
If you enjoyed this post, make sure you subscribe to my RSS feed!
Got an extra dollar to spare … For your Credit Cards?
So can you spare a buck a day?
If so, maybe you can apply an extra $30 a month to your credit card bill. If so, you will be paying to finance $360 a year less, which with interest rates approaching 27% on some cards can be substantial! This is especially true if you have only been paying the minimum balance and found that you are not getting anywhere trying to pay off your balances.
This same approach can also work on car loans and some mortgages. Look at the monthly payment as a minimum and try to kick in a bit extra when you can. I am here to tell you, but nothing is so satisfying as watching those balances decline so you can think about the day when you do not have monthly loan balances to make payments on!
In addition to saving money in the long run, you will also reduce the length of time it takes to pay the bill off. So go ahead and buy the cheap coffee instead of the grande latte, and get that debt paid off!
If you haven’t been here already, why not visit our online debt payoff calculator and see how fast you can lower that debt?
If you enjoyed this post, make sure you subscribe to my RSS feed!
Layoff Insurance for Unemployment Mortgage Protection
US Home foreclosures in July, 2008 were up 55% over the previous July, and many Americans are concerned about their financial stability these days. Companies are eliminating positions, and state unemployment benefits will not cover the mortgages, auto loans, and other bills that most families have. That is why many people are planning ahead by looking for mortgage unemployment insurance.
This type of layoff insurance provides a cash benefit. The cash can be used in any way it is needed, and is not tied to one particular debt, like a mortgage, as is the case with many other types of credit insurance. This allows the owner of the benefit to control how it is used, and we believe this control is in the best interest of the consumer, and not just the best interest of lenders.
Layoff insurance offers affordable rates, and can be a valuable financial planning tool for working people.
If you enjoyed this post, make sure you subscribe to my RSS feed!
Debt Pay Off Calculator
How Long To Pay Off Debt With Minimum Payments?
You may wonder how long it will take to pay off a credit card or other unsecured loan by making the minimum payment. Well, I have to tell you that if have run up a substantial balance, let’s say a few thousand dollars, it will take awhile if you can manage it at all. Let’s say you have a fairly moderate $3500 balance. And lets say your interest rate is reasonable, say 14%.
FREE ONLINE DEBT PAYOFF CALCULATOR
Well, if you make $85 a month payments, it can take 4 and a half years, and you will have paid out almost $1200 on interest on that $3500 of debt! If you can swing $150 a month payments, you can reduce your payoff time to about 2 1/3 years, and almost cut the interest in half.
Of course, if you get sucked into the extra services, like credit protection, that the companies try to tack onto your bill, a minimum payment will make even less progress.
debt, loans, credit card, debt payoff, debt reduction, bad credit
Technorati Tags: debt, loans, credit card, debt payoff, debt reduction, bad credit
If you enjoyed this post, make sure you subscribe to my RSS feed!
