Would you like to be debt free again?
The nation's unemployment rate jumped to 5.5 percent in May — the biggest monthly rise since 1986 — as nervous employers cut 49,000 jobs. Two income families are struggling with how to cope with the loss of a primary earner, and still maintain a household budget. Gas prices are climbing into the $4.00 a gallon range across the nation. The U.S. is wrestling with the worst food inflation in 17 years, making families cut corners on nutrition. Parents are giving their children sodas, because it’s cheaper than buying milk. Adjustable rate mortgages are forcing people into foreclosure in record numbers. And to top things off people are consumed with unsecured debts. With creditors becoming increasingly more aggressive with their collection techniques, and constant collection calls, people are experiencing a whole new level of stress.
“We have seen a huge increase in calls over the last 6 months from people concerned with freeing up some of their income just so that they can survive,” said Shane Garner CEO of Dallas based Credit Alliance Group.
When the decision comes down to home, food, or debt; debt tends to lose. Many people that have relatively good credit scores are carrying very bad debt to income ratios. When trying to refinance a home and get out from under a climbing mortgage payment they are running into closed doors from lenders because of it. People want to avoid filing bankruptcy; so they are searching for other options.
A true debt management program can give them that light at the end of the tunnel. By reducing the overall debt amount by 50-60%; people are able to free up some of their money so that they can apply it to their other rising expenses. In the process of completing a debt management program their debt/income ratio is improved; which increases refinance opportunities.
“Having the harassment calls from unscrupulous collectors stopped was a major step to getting my life back in order,” said Michael D., a client of Credit Alliance Group.
At the end of the day preparedness and patience is key to balancing a dynamic budget. Stopping and taking the time to review all of your expenses and separating needs from wants is a great first step. Then prioritizing expenses so that you can take action where action is needed. Also seeking assistance from professionals in areas concerning your personal debts is often a wise decision. Then take a deep breath and remember that summer is finally here, enjoy the company of family and friends, it’s free.
CreditAllianceGroup is a debt management company that helps individuals nationwide become debt free again. Visit http://www.CreditAllianceGroup.net for a free consultation with a Credit Specialist.
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