Creating Wealth Through Debt Settlement
posted by Mike Clark on 10/7/2008 12:18:21 PM
Home values, stocks, and the value of the US dollar are all falling. Is it really doom and gloom for the US economy? Opinions vary from one economist to the next.
Dave Ramsey, the host of a popular syndicated financial radio show, has mentioned "that GDP and Net Worth figures were steadily rising - and pointed to these facts as proof that talk of recession is nothing more than ‘fear mongering’."
Other financial "gurus" such as
Peter Schiff have made mention of the growth bubble and the change of tide from Americans who saved to Americans who spent. The spending (or over spending) has bolstered the economy under false pretenses. The over extension of credit and the push to spend are devaluing the dollar at a rapid rate and will lead to a great recession.
Where does the truth lie? Probably somewhere in the middle. We are currently experiencing some economic turmoil in the United States. Borrowers that could not afford homes were set up with adjustable rate mortgages on the forecast that housing values would continue to rise and interest rates would stay low. Americans were encouraged to spend, spend, spend. Technology advancements provided new gadgets and goodies that were pushed on consumers. Products were outdated and no longer supported in order to bolster the sales of replacements, and we the people bought into it. But did we really
buy into it, or just borrow into it?
Fast forward to today. Many Americans are struggling with those mortgages that they couldn't afford, credit card debt that has overwhelmed them. Who's to blame for that? Should the banks take the responsibility for reckless lending? Should the media for pushing spending? Should the manufacturers for creating desire and want for their products? Should it be the consumers for allowing themselves to be sucked into the buy now pay later cycle? Should it be all of the above, or should it be a lack of education and emphasis on saving instead of spending?
With all of that said, what is most important right now? Pointing a finger or grabbing a hold of the situation, addressing it and educating consumers, pushing towards a saving society instead of a spending one.
The first step to addressing the problem as opposed to just complaining is to analyze your situation and plot a course of action to get out of debt. How can a consumer get out of debt with the current economy? By asking for help! It may not be that debt settlement is the right option for everyone, but one of the principles of debt settlement is saving. By assessing a consumers individual situation a debt analyst will assist them with creating a budget to amass funds used to settle their debts. A typical debt settlement program, when explained, implemented, and carried out properly) will help consumers create a budget that is both manageable and void of unnecessary expenses. After saving and completing settlements with creditors, consumers are accustomed to saving a certain amount per month to satisfy the settlements. When they are done and the consumer is out of debt they are encouraged to continue saving as they had been.
The continued savings creates a wealth for the consumer and with diligence, patience and an understanding based on experience the consumer is able to truly get ahead and maintain a budget and "cash only" policy when it comes to the luxuries of life. Instead of putting that vacation on a credit card a consumer would be more apt to look at their savings plan and allot monies each month to pay for the vacation, or TV, or new gadget when they have the money to do so. Having a small amount of "wealth" is a good feeling. It's enabling to have a grasp on finances.
As a consumer, how would you benefit from having a strict budget, no credit card debt, and an ever increasing savings balance?
Technorati Tags:falling home values, adjustable rate mortgage, economy, create wealth, debt settlement, budget, savings, credit card debt, get out of debt
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