Personal finance columnist Michelle Singletary writes about consumer credit for the Washington Post. In timely commentary on the passing of the Credit Cardholder’s Bill of Rights in the House of Representatives, she explains how changes coming to the rules of the game for consumer credit will not change the behavior of a subset of those in debt — those that are not simply choosing to not pay off their credit card balances each month, but those that are in serious financial turmoil, and cannot clear the account even if they wanted to.
She cites alarming numbers. 44% of American families carry a balance on at least one credit card, according to the Treasury Department. She concludes that vulnerability out of financial need is the reason that consumers should not have access to unsecured credit with steep fees and interest rates. But this is half of the equation. The other half is that some will simply use the credit if given the opportunity without fully considering the long-term consequences. In both cases, getting access to the right tools to improve one’s financial health, including the aggressive elimination of any existing debt, is key. Also, a lack of access to the resources that provide a holistic understanding of all areas of debt fans the flames to these consumer problems across the board. The DebtGoal tool provides not only a user-friendly experience in a clear format, but uses advanced techniques to execute the most optimized way to pay down debt — an underemphasized value since the sooner one gets debt under control, the sooner one can get move on to the more important things in life.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: adjusting mortgages, consumer borrowing drops debt plan, consumer spending under control, credit card borrowing and debt, cutting the cable and debt, cutting the phone and cable TV bill, debt elimination, debt elimination in a marriage, Debt Management, debt management strategies for couples, debt plan, debt plan when married, debt reduction, debt reduction plan for a couple, debt reduction with new work, debt strategy, debt when married, debt with credit card overusage, digital services and debt, digital services rate reduction strategy, digital services with debt, discretionary cost strategy with debt, drop in credit card borrowing, frugality, getting back into the workforce to eliminate debt, marriage communication on debt, marriage communication with debt, marriage debt planning, marriage finances with debt, marriage spending with debt, mortgage adjustment, mortgage management, mortgage modification, mortgage reconfiguration, mortgage renegotiation, mortgage resolution, one income household and debt, saving money for debt elimination, second income family and debt, the debt guide to digital services, two income household and debt
