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Debt Free Roadmap "Consumer looking to become debt smart despite Chistmas and New Years debt woes."
Those with debt
woes should look into all available options before committing
significant funds to debt consolidation
services.
Household debt is
at a record high relative to disposable income. For many, debt
is considered a normal part of life. This time of the year
consumers think with their hearts instead of with their minds.
The after effects can leave them overwhelmed with regret and
anxiety.
Consumers are planning to spend an average of $763 on Christmas
gifts this year. This estimate is up modestly from approximately
the same time last year, when the average projected spending was
$730. These data suggest that retail spending this
holiday season will not be depressed and may exceed normal
seasonal patterns -- despite what some observers have considered
to be a negative economic climate.
The top-three reasons given for rising debt according to
American Demographics which tracks consumer trends are that :
1. People are living beyond their means (26 percent).
2. Credit cards
are easily obtained (17 percent).
3. Incomes aren't keeping up with expenses (17 percent).
Consumers have relied on debt consolidation
services, but for most it's only added to the confusion.
Once someone consolidates into one debt, they can sometimes
convince themselves that they've dealt with the problem when, at
best, they've been on a treadmill going nowhere.
The education process is by passed and consumers remain "debt
dumb". The way to get out of debt is
by changing habits. Consumers need to commit to getting on a
written game plan and sticking to it.
Consumers Must Be Educated By Resources That :
1. Providing step by step instruction thus educating consumers
to become "debt smart"
2. Helps consumers to determine debt priorities, and establish
reachable short term goals.
3. Educates consumers on how to save on necessary
purchases and how to avoid unnecessary debt.
4. Focusing on empowering families to set up realistic budgets while
celebrating their successes.
5. Teaching powerful credit strategies that boost credit scores
systematically.
Any debt resource must provide both a comprehensive and detailed
approach to consumer debt, while avoiding problems created by
debt consolidation. Consumers must become their own advocates
through education.
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