Consumer Credit Debt

2007-03-08 10:33:40

( Financial )



Consumer Credit and Consumer Credit Debt
Consumer Credit refers to credit services offered to the public at large, for personal or family use, excluding real estate. Credit cards, student loans, and personal loans are included in the term consumer credit. Consumer credit debt is simply money owed to the companies offering consumer credit services.

Consumer Credit Pitfalls
If you've ever maxed out your credit card with no money in the bank to pay for all your expenses, you probably know what compounding interest will do to your bill. The availability of consumer credit to almost anyone with an income exposes people to the temptation to live beyond their means. A credit card can be a very difficult tool to restrain when sales and promos abound on every side. However, with discipline, consumer credit services can be a great convenience.

Consolidating Debt
Imagine a five-figure credit card bill hounding you every month. You are unable to pay for it; you are unable to even put a dint in it. However, you have a mortgage on your home that is easier to pay, as it is spread out over a period of thirty years. One option for you, should the credit card company concede, is to consolidate your debt. Basically, this means that your credit card bill will be folded into your mortgage, and the two will become one. The extra sum of money will be added to your principal, and a new mortgage will issue, with your credit card bill as part of the principal.

Help for the Weary
If you find yourself in a debt spiral, using one credit card to pay for another, consumer debt counseling is provided by many organizations. Some will charge you, others will not. A simple online search will render many options for you.

Debt Management Programs
Consumer credit debt can be overcome by following debt management programs. These are professionally designed programs that will help you manage your expenses and income so that in time, you will be debt-free. Following these debt management programs entails a lot discipline. Overcoming the impulse to gratify yourself immediately is one of the biggest hurdles in debt management programs.

Christian Debt Counseling
Many organizations that are involved in consumer debt counseling are also Christian organizations. It is important to note this, when considering which organization to turn to for help. Christian debt counseling is likely to involve discussions of God and biblical principles. However, the focus of that organization will still be the eradication of debt; you are not likely to be proselytized by these organizations.


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