Debt Freedom Now: How To Get There
Debt Freedom Now: How To Get There
Debt Freedom Now: How To Get There
National Debt Relief Program
Debt Freedom
Debt freedom programs are helping thousands today. We offer resources for debt freedom at the end of this story.The mid-terms elections brought newfound attention to the ever-increasing national debt, which stands at more than $13.8 trillion, or nearly $44,600 per U.S. citizen. This number dwarfs levels of personal debt, and it can have an impact on the future value of individual savings and investments.
Collectively, when it comes to debt freedom, we have some work to do. Americans owe on three major types of debt: the government's taxpayer-paid national debt, individual consumer debt (including credit cards, mortgages and auto loans), and student debt. Debt freedom experts took a snapshot of each type of debt today, and what individuals can do about each debt.
National debt raises risk of inflation. In terms of debt freedom, the national debt is important to the financial well-being of Americans for several reasons. First and foremost, individuals will pay when the bill comes due. The government makes money by taxing the people you and me. So when they pay that debt, it's really us paying that debt off. In addition, as the debt mounts, and we are less able to cover the debt, the interest rates on that debt will increase.
Debt Freedom Now
Secondly, economists argue that a large national debt can create inflation. Inflation, in turn, makes the dollar worth less and affects everyone's debt freedom. That means the dollars people are putting aside in savings now may be worth a lot less in years to come. Additionally, if inflation heats up, the Federal Reserve might raise interest rates to cool it meaning debt will become more expensive for everyday Americans. What to do: You cannot do much about the deficit, but the concerns it raises for the future are good reason to avoid personal debt. Be a saver you will need more money in the future.
Consumer debt is a huge drain on personal income and can be the death ray when it comes to debt freedom. Today, consumers owe $2.4 trillion in consumer debt. American households have committed more than 12 percent of their disposable income to debt payments. If automobile leases, property taxes and other obligations are included, renters pay more than 24 percent of their income to debt. What to do to stabilize your debt freedom chances: Create your own credit card debt relief. Be conservative with purchases. Save up a good down payment before purchasing a vehicle, and buy what you can afford, not the latest model to hit the showroom floor. Always pay bills on time to avoid late fees and penalty interest rates.
Student debt is rising, as well. Total student loan debt is now greater than total credit card debt. Students and graduates owe at least $868 billion, more than the total U.S. credit card debt of $814 billion. This is not the debt freedom way. Student loan debt increases at almost $2,900 per second, according to FinAid, which has created a student loan debt clock to tally the total. Some students will pay hundreds of dollars per month for 25 years after they graduate. What to do: Take student loan debt seriously. Do not borrow more than you need. Consider finances when you select a college, and consider what you are likely to earn in your chosen career before borrowing. Seek out help with repayment, and contact your lender if you are having trouble repaying your loans.
Fortunately, effective programs and services exist today to help people achieve debt freedom. To learn more and get started, please visit National Debt Relief Initiative.
http://www.articlesbase.com/personal-finance-articles/debt-freedom-now-how-to-get-there-3724734.html
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