subject: Debts are harsh, do away with them [print this page] However, if adebt consolidation program is suitable for a particular debtor, the same program may not be suitable for another. To find out as to whichdebt relief method best suits an individual, the first thing a debtor should do is to take help from an efficient debt counselor who will be able to guide the debtors better and give suggestions accordingly. Avail adebt counseling session from an expert debt counselor.
A good debt counselor works in close association with the debtors and works out a budget so that the debtors can spring back to a healthy financial condition. He can suggest a method which suits your financial needs best so that you can becomedebt free within a very short time period.
Debt has been a major cause of concern in the last couple of years and it worsened to lead to the subprime loan crisis lately. .
Debt has taken the world by storm-
During the period 1970 to 1980, there were many low income nations whose debts had started building up due to several factors. Some of the factors included-
Fall incommodity prices
Low rate of economic growth
Economic shocks suffered by several countries
These factors led to the unsustainable debt burdens'. Reports indicate that by the year 1992, as many as 33 indebted low income nations had debts which had increased manifold and was much higher than their yearly export
Light at the end of tunnel
However, light at the end of the tunnel was seen when multilateral lenders such as International Monetary Fund, the World Bank and various other regional development banks took initiatives to introduce debt relief programs.
The World Bank and its role in debt relief
The MDRI or Multilateral Debt Relief Initiative (set up in the year 2006) and Debt
Relief Initiative for Heavily Indebted Poor Countries or HIPC (set up in thee year 1996), the World Bank Group extends debt relief to the nations with low income.
As many as 33 nations are receiving debt relief assistance from the World Bank under both or any one of the initiatives. As of 2006, the debt relief initiative was worth USD$70 billion NPV or Net Present Value (taking into consideration the participation of all the creditors).
Despite the fact that the World Bank is extending assistance to the low income nations, some of the other factors that lead to financial crisis worldwide may be attributed to the emerging economies, which do not get sufficient protection, the presence of unregulated free markets and the measures adopted for the structural adjustments are some of the other factors.
Debts are harsh, do away with them
By: pollstump
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