How to Stop Debt from Taking Over your Life

 

Everyone likes to think that they are good with money and have the necessary tools to keep themselves in the black. Unfortunately, with more and more people taking out credit to pay for things with money they technically haven’t got, debt levels are once again on the rise. Whether it is through mortgages, credit cards, or even short-term loans, the specter of debt continues to loom large over a number of Americans.

 

Why are people in debt?

It is difficult to pinpoint exactly where these problems with money come from, with 80% of Americans admitting that they are in some form of debt by accumulating sources. The main three are believed to be student loans, credit cards, and car finance planes, with credit card debt, in particular, being quite high. According to the latest figures from September 2020, Americans nationwide have a combined $416.13 billion worth of credit card debt, which, rather surprisingly, is a drop of 6.34 percent from the previous year. It is still quite high but nowhere near the peak of $1trillion from the peak of the financial crisis in 2008. All of this feeds into the current sky-high household debt figures of $14.3 trillion, which is $1.6 trillion higher than the previous peak of $12.7 trillion from the third quarter of 2008, once again at the height of the recession. This amount of debt can have a knock-on effect on the chances of gaining mortgages and other credit in the future, as they leave a trace on your credit file.

 

How bad can it get?

The worst-case scenario for any debt is that you fall into arrears and then have major problems making the repayments, seriously damaging your credit file, and making it harder to borrow again in the future. One of the worst results can be bankruptcy; It is believed that 14 percent of Americans own more than they currently own, but only 1% of the file for bankruptcy, with the other 13% avoiding wiping the debts through fear of the financial implications. These arrears can lead to bailiffs and debt collectors, with mortgage arrears leading to homes being repossessed by the banks. Try going to http://blueprinthomes.com/, and you might be able to sell your home to help you out of the financial mire. Whether it is a quick sale or ensuring you get the best price possible, they can be of help.

 

Finally….

It is never nice to be in a situation where your money troubles are causing real issues for you both mentally and through the long-term impact on your credit rating. With the right help, it is possible to come back from these problems, but it is important to act quickly. Right now, it might only be money and a bit of sleep that you are losing, but without quick and decisive action, you might see yourself losing quite a lot more in the future. The question is, can you honestly afford to let that happen?

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