| OK listen up folks, do you have a mountain of debt on | | | | basic mathematics. Person A has an income of |
| your credit cards that would probably put a third world | | | | $40,000 per annum and credit card debt of $10,000 |
| developing nation to shame? | | | | that they clear at the rate of the bare minimum (usually |
| Suddenly does it seem to you and you alone that | | | | 5% per month) so this roughly equates to $500 per |
| there is nothing in the classifieds but advertisements | | | | month out of a disposable income of roughly $2,500 |
| from Companies all promising competitive rates on | | | | per month. |
| Credit Debt Consolidation? | | | | This means that twenty percent of their income goes |
| Are becoming obsessed with hiding the credit card | | | | straight out of the door to service existing debt before |
| statements before your wife gets to the post in the | | | | they have had a chance to cover the ongoing |
| morning? | | | | expenses for the month. Throw into the mix the |
| You do? | | | | unexpected hospital visit, pet care expenditure or |
| Well do not be too despondent because it would | | | | domestic crisis or automobile problem and before you |
| appear that you are not alone in all of this. Does this | | | | know it the problems merely increase |
| not make you feel better? You feel like going out and | | | | You do not have to be a fiduciary genius to spot the |
| treating yourself to something new right away! | | | | potential flaw in this whole exercise. As a major |
| See, that is the problem. It appears that the average | | | | national charity for the Homeless once said we are all |
| person in the US is about $8,000 to $10,000 in | | | | a mere 3 missed pay checks from being without a |
| unsecured debt at any one time. Now for a certain | | | | roof over our heads. OK this may be slightly on the |
| part of the population that may or may not be a | | | | over dramatic side but by studying the information |
| problem but for the average household it is and the | | | | above it is quite easy to see how very easily this could |
| knock on effects of this could be devastating on the | | | | happen. |
| economy. | | | | Financial habits like these are all well and good in days |
| One of the reasons for this mountain of debt, it is | | | | of low interest rate but when the economy starts to |
| argued is the difference between the average wage | | | | cool and the markets react badly then we have to |
| and the average cost of living, Basic balance of | | | | change our ways or go under. |
| payments issue in Macro economic terms and the gap | | | | If you are going to do something positive about this |
| between monthly income and monthly expenditure in | | | | then make sure that whatever decision you reach, |
| micro economic terms. In summary, living la dolce vita! | | | | whatever route you plan to take is the right one for |
| Sound familiar? Yes full marks to the guys at the back, | | | | you and one that you see yourself accomplishing in its |
| we are living beyond our means and sooner or later it | | | | entirety. |
| is going to catch up with us all big time! | | | | Do not let this force you into some rash and foolish |
| If we take a look at the basic issue at stake here we | | | | credit debt consolidation exercise that might cost you |
| have a mountain of debt that the average person only | | | | more in the long term. |
| services the bare minimum of. So let us look at the | | | | |