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Caveat/Disclaimer: This is general information and may not be suited to your own situation. Also, advertisements are generated automatically and Amerloan.com does not endorse any specific product or service.
Seven BILLION dollars. That's the amount of US consumer debt. At the same time, there are serious problems in the sub-prime lending market. If the value of the dollar keeps declining and the US debt keeps expanding, savings will be worth dramatically less.
As Americans age, they and the country, will have to get their financial houses in order. Otherwise, our currency will not command respect, and the burden will fall most heavily on our children. Individually, credit card debt is strangling many Americans as home equity is used more and more to pay off revolving credit. Car loans payment amounts have risen dramatically in the last few years and people are tapping into their home equity for goods they don't really need.
Does this mean one should not carry credit cards or use loans? Not at all. It means that consumers need to learn the rules of responsible card use. For those already over their heads in debt, it means sitting down and making a plan, probably getting responsible independent help from a source that has nothing to gain. Links are listed on the next page of this site. These are links from advisors that have your best interests at heart. A good accountant can be helpful as well, or a friend who is financially savvy and responsible. In my own experience I have found a few things to be true about revolving credit in general.
Dos and Don'ts:
Do not borrow more than you can pay at the end of the month;
Do not carry more than a few cards and when you stop using one, close the account (too many open accounts will tempt you and your credit rating will be downgraded if too many lines of credit are open.);
Pay on time and do not go over the card or loan limit. This avoids late fees, bad credit reports and hikes in interest rates that may be triggered by late payments;
Make a budget;
Track your actual spending to see where money is actually going.
Click for Responsible Borrowing Resources.
Copyright AMERLOAN.COM 2007-8: Other resources include Zero Rate Card and 0 Percent Card (How to use a Zero Percent Credit Card to your advantage) .
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