Getting into debt is a common enough problem that it shouldn’t cause any shame—even for families with relatively high incomes. Unfortunately, credit-based marketing has hit an all-time high. Personal loans are available from thousands of sources online, and these include peer-to-peer lenders, alternative lenders, payday lenders, fintech lenders and other sources of credit, such as store accounts, credit cards and more. Automobile and home financing alone account for a bigger percentage of most people’s income than in past decades.
Elite Document Services offer turnkey financial rehabilitation services that can get you out of debt and manage your money more responsibly. The programs are custom-tailored to each client, based on total debt, income and lifestyle expenses. Getting into debt is easy, but getting out of debt is a little harder. However, it makes sense to eliminate high-interest charges in a structured way to free more discretionary income. Once you’ve learned how to stay on top of your finances, it becomes easier to avoid the mistakes you may have made in the past.
Crushing Debt Statistics in the United States
In the United States, getting large loans are the common way to deal with major life expenses that include financing a college education, buying a car or taking out a mortgage on a home. The entire U.S, economy runs on this principle, and there are legal protections for helping people deal with too much debt. Total consumer debt approached $14 trillion dollars in the second quarter of 2019. The figure has increased for the 20th consecutive quarter. Other key statistics about debt as of the third quarter of 2019 include:
- $1.08 trillion in credit card debt
- $9.4 trillion in mortgage debt
- $1.3 trillion in auto debt
- $1.48 trillion in student loan debt
Each of these categories can put families into uncontrolled debt, which the mortgage crisis of 2008 clearly demonstrated. Mortgages became upside-down as people owed more money on their homes than their current values. The government responded with a financial recovery plan that resulted in car companies offering low-interest financing rates that are still common today.
Educational costs have spiraled out of control, but government and private lenders quickly offered a solution—educational loans at reasonable interest rates. Unfortunately, those reasonable interest rates start accruing interest and penalties before many college graduates find work, and the money problems can haunt them for years.
The Credit Card Pressure Syndrome
Credit cards have changed the way consumers buy luxury goods. People used to wait until they could afford new luxury items, but easy credit has become a way of life for most American families. People spend so much on student loans, cars and homes that it becomes tremendously enticing to get a no-credit or low-credit introductory credit card offer. Unfortunately, the minimum payments escalate quickly to create an additional financial burden.
Getting Out of Debt with a Proactive Approach
Satisfying your monthly obligations with minimum payments will probably never get you out of a large debt burden—unless you’re expecting a windfall. Taking a proactive approach to budgeting and financing, however, can provide real results. Elite Document Services offers many strategies and programs for getting out of unwieldy debt. These include:
- Credit score monitoring: Monitoring your credit score can detect inaccuracies and inform you when your credit score improves enough to warrant refinancing high-interest loans. Monitoring can detect signs of identity theft and help you get your credit rating restored.
- Fiscal rehabilitation: Elite Document Services offers a customized plan for each client that’s based on his or her needs. The company can find the best rates on consolidation loans, negotiate with your creditors for lower rates and provide specialized advice for those who own businesses and have mixed their business and personal credit.
- Educational tools: These tools can help you manage your finances more professionally, create a realistic budget, learn how to save on everyday expenses and use online technology to make wiser borrowing decisions.
Putting Your Financial Affairs in Good Order=
The experts at Elite Document Services have years of experience in helping families manage all kinds of debt scenarios, and they can help in almost any situation. Staying on top of your credit, creating a realistic budget and analyzing your current debt are the first steps toward a better financial future.