How To Live Without Credit Card Debt | Total Debt Relief Blog

Although economic correspondents and consumer finance professionals are bitterly divided on the specific reasons behind the slow but nevertheless significant withdrawal of Americans from reckless borrowing ? a mix of worsening debt relief needs, sharply heightened lending restrictions from the commercial banks, and overall sense of impending market collapse seems the likeliest cause ? it?s clear that United States shoppers are at last recognizing the inevitable problems that follow credit card debt abuse.? Ever since the 2008 recession, folks have been taking out fewer unsecured lines of credit and spending less upon the balances that already exist.? While the overall personal debt levels attached to the average household residing within this country are still nothing short of disgraceful, any sign of consumer discipline should be applauded, and the current usage figures do demonstrate a substantial decline after decades of unbroken acceleration.

?There really has been a turnaround in the way that ordinary Americans seem to view borrowing,? said Marta Jacobs, a credit card debt relief agent and former mortgage loan officer, ?and it?s impacted more than just credit cards.? You?re seeing middle class families selling their vehicles and divesting themselves of all kinds of home electronics to fund debt settlement packages and eliminate their balances altogether.? Even in the mortgage realm, as screwed up as that industry has been, there are changes that would?ve sounded absolutely impossible just a couple of years ago.? Home owners who lost title due to foreclosures or short sales are still interested in buying a new place, but they?ve been talking to realtors about just saving up the necessary money and buying a residence with cash, even if it takes another ten or fifteen years.?

Although, given the relatively unobjectionable interest rates and sweetened tax breaks granted residential mortgage loans, financial managers may reasonably counter that such a drastic response makes little sense as a matter of monetary policy, the desire to avoid debt ? and, in so doing, avoid bankruptcy or potentially back breaking debt relief strictures ? should at least be understandable.? Even with the largest mortgage banks offering loan modification incentives and debt settlement arrangements that carve away eye popping fractions of the former balances, the continual media stories blanketing airwaves and newspaper from coast to coast with tragic tales of homeowners losing their properties to foreclosure had, it appears, a dramatic impact upon the American consciousness.

As for credit card debt, the consensus seems to be among financial analysts that a reversal of course among lenders and borrowers was long past due, even if many of the consumer finance veterans privately doubted if either the ever larger totals of shopaholics or the credit card companies enabling their self-destructive splurging could ever break away from a reflexive cycle of mutual assured economic ruination.? ?The credit freeze and the hesitancy of the lending community about another recession played some part, don?t get me wrong,? Jacobs continued, ?and, ever since the Credit CARD Act two years ago, we?ve all been waiting for the federal government to get more involved with helping folks dig themselves out of debt.? Still, now that the markets are that tiniest bit better and the banking institutions have had time to evaluate the ramifications of the legislation upon their own bottom line, we all expected things to more or less start returning to normal, and it?s just not happening.? Knock on wood, but, as consumer debt relief goes, we may have turned the corner.?

Source: http://www.totaldebtrelief.net/total-debt-relief-blog/how-to-live-without-credit-card-debt/

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