Debt Consolidation Can Often Be The Best Debt Solution.

Very few people sail through life without any financial worries

, and at one time or another most people experience debt problems.

The situation really has come home to roost due to the recession adversely affecting salaries.

Many house holds have seen their income decrease due to for example working shorter hours each week as their employers have introduced cut backs in an attempt to continue trading.

The even less fortunate have found themselves unemployed and are now in receipt of state benefits.

Some industries have been more badly affected than others with the banking and construction industries particularly badly affected.

The reckless lending of banks and building societies has lead to many of their own workers being thrown onto the scrap heap of redundancy and many might say that they have had their just rewards.

It is only the minions who have suffered as the bank bosses have in general kept their positions.

These bankers were prepared to advance loans both to companies and to private individuals that they could never realistically repay.

They probably did not really care if the borrowers could afford the loan repayment as it was not their own money with which they were being so reckless and they were making thenselves rich with the enomous bonuses that they received with the loan volumes that they were generating.

When the bubble burst there was a huge bang that permeated thoughout society, and the incomes of many UK citizens crashed as did the banks.

Credit card and loans debts became a problem. which were impossible to repay due to a cut in income.

Only ill health has a more serious affect on a person and debt leads to the break down in all over well being and a person with debt problems can really become ill.

For those in debt, mainly due to simply having too many debts that amount to a considerable sum of money, the only way to achieve any peace of mind is by debt consolidation.

Debt consolidation as the name implies is the combining of all the numerous pieces of debt into one making financial outgoings easier to manage and saving money.

For homeowners with equity on their property debt consolidation can be implemented by means of a consolidation loan.

Credit cards have interest rates normally of a minimum 20% and often much higher at up to and over 40% APR which is much higher than consolidation loans at about 9% APR.

Consolidation loans are only available to homeowners who have a fairly good credit rating.

For non homeowners and homeowners with poor credit ratings it is essential to obtain the correct debt advice to solve their debt problems.

A possible debt solution could be by means of debt management which is available to both tenants and homeowners.

A person in debt can arrange debt management without outside debt help from an expert in debt solutions, but it is better to have a debt expert arrange it as those to whom you owe money prefer this.

Many are afraid to own up to the fact that they do have debt problems and choose to ignore them. This is foolish as debt will not simply disappear and debt help is available to offer a solution to those in debt.

by: Liz Moir

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