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Consumer Debt is the Worst Kind of Debt

Consumer Debt is the Worst Kind of Debt

The recent tough financial times have made us go through all kinds of financial turbulences and the same has forced us to seek help and support from various debt management plans offered by debt settlement companies. However, here we would discuss about the worst kind of debt which undoubtedly is the consumer debt which gets accumulated by maxing out one's credit cards and other types of revolving retail accounts like grocery bills and so on. The absence of any fixed minimum payments in this kind of debt makes consumer debt the most odious of its kind. Without any fixed term of payments and time in which one has to clear the debt, the debtor could continue making payments for decades. The next negative thing is the fact that accumulating consumer debt is the easiest than attracting other kinds of debt as it's not that hard to rack up large amounts of consumer debt shopping at malls, retail stores, and department stores. However small the amount may seem, we keep getting in debts in each different shops and groceries just to realize at the end that we have got some serious financial obligations towards a number of lenders and like.

A major aspect of people who are prone to falling prey to consumer debts is their shopaholic nature and impulsive buying disorder; which not only drains them financially but also make them collect numerous mindless and unnecessary stuffs in their living area which ultimately becomes a mess or clutter. A victim of consumer debt thus does not only accumulate negative and uncontrollable consumer debt but also gather a heap of junks in their life, home and living space which makes life immobile and tacky for them; this often takes a shape of a psychological disorder called compulsive obsessive disorder wherein people lose control over their spending habit and often pile up materials which they seldom use. The problem with consumer debt is that it must be paid off by the sweat of your brow. Clothes and food and dishes and kitchen gadgets and "stuff" all depreciate rapidly. In most cases, you'd be lucky to get pennies on the dollar when you tried to resell your stuff, even if it was barely used. This is a unique and most unwanted quality of consumer debt when compared to secured debt. Debt that is secured can usually be cleared by simply selling whatever was used to secure the debt.

Consumer debt, on the other hand, cannot be cleared by selling the items you purchased. Unfortunately, you will have to work off the debt or settle it, or declare bankruptcy; and none of these are enjoyable. Thus it is always advisable to avoid getting into a spiral of consumer debts which may lead your finances into a quicksand.
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