The number of debtors in the US has increased massively over the last few years, and it's not just down to the economic downturn. The fastest growing causes of debt these days is not because people lose their jobs or because their mortgage repayments keep on increasing - it's a lot simpler than that.
Unrestricted, frivolous spending habits are the major cause of consumer debt today. Thanks to the ease in which almost anyone can obtain a credit card or finance on their large purchases today, as well as gimmicks like Payday Loans, has led to a huge increase in unrestricted consumer spending. It never used to be this way. Before, loans and credit cards always came with very high interest rates, and they were not very easy to obtain. What's more, until recently we never had the same demand for luxury goods that we have today. But times have changed, and as credit has become easier to obtain, luxury goods are being seen more and more as necessities, something that has resulted in a drastic change in consumer spending patterns.
You see your friends and your neighbors with the latest new electrical gadget, a new car, and so you decide to get one for yourself. You don't have the money so you buy it on your credit card, or you apply for a loan. Sound familiar?
But the danger is, it's all too easily to miscalculate what you can actually afford to pay back. Multiple loans and credit cards make the situation worse, and before you know it you find that your bills are piling up, you're short of money, and things are fast becoming unmanageable.
When you find yourself in a situation where you have multiple debts on your hands, things can quickly fall apart. The first thing you'll notice is the impact on your credit score. All of a sudden, you start being refused every time you approach a new lender for more credit. If you find you can't keep up with your debt repayments, more and more interest is added on to what you owe.
You'll find that your financial abilities are rapidly curtailed as you no longer have the cash to pay for the lifestyle you once enjoyed, as most of your income is spent on paying off debts. Things like luxury items and leisure activities that you once took for granted quickly become unaffordable, and of course there's no money tucked away in case of an emergency. Creditors and lenders start sending threatening letters, demanding payment - you're left in a state of misery, feeling constantly harassed and unable to live the life you once had.
When you get into this desperate situation, it feels as if the whole world is against you, and that you'll never be able to get free of your debts. But there is hope. There is a solution. You simply have to brave enough and admit to yourself that now is the time to ask for help!
Help is on hand. We understand how you got into this mess, and we know the way out. There is a way to a better financial future. Find out how you can escape the clutches of your debtors - Contact us today for a free, no obligation debt consultation and see what can be done!