Many of our Escondido readers may feel lucky just to have a job in today's economy, which remains as stagnant as ever. The unemployment rate is too high and there are building concerns about American employees becoming a "part-time workforce." Nonetheless, millions of Americans do their best to attempt to stash funds for retirement, whether it is through an employer-based 401(k) or an individual retirement account, also known as IRAs. But if an Escondido resident is trying to save for retirement but also dealing with mounting credit debt, isn't that a problem?
People born in different generations usually have different approaches to the problems they encounter, and credit debt is no exception. For instance, a recent article noted that some types of loans, like car loans lasting more than just a few years and home equity loans, were less common 60 years ago than they are today. As a result, the percentage of a household's income that needed to be devoted to debt back then was far lower than it is today. Nowadays, however, even after the financial crisis of recent years, getting a loan is much easier. And it appears that many people have been taking advantage of that fact.
Many Escondido residents have one goal in mind when they think about their financial situation: get out of debt. But, oftentimes, that may be easier said than done. With that in mind, a recent article noted a few different strategies on how to get out of debt, specifically credit card debt.
After a Chapter 7 bankruptcy, many people face the prospect of rebuilding their credit. Many financial experts would probably tell our Escondido that this is a difficult task that will take years to accomplish. However, once someone has that fresh start that a discharge of debt through bankruptcy offers, they will usually be more receptive to advice on how to manage their finances and, eventually, how to manage credit cards.
Most of our Escondido readers, like everyone else, can probably not even fathom an amount of money like $850 billion. But, according to those entities that monitor the nation's credit, that is the amount of credit card debt owed by American citizens as of the end of 2012 - and apparently that is a good thing.
Some of our Escondido readers may remember the times when credit card companies would send out representatives to college campuses throughout the country, attempting to get college students to sign up for credit cards by tempting them with free t-shirts and other merchandise. Laws have changed and addressed that situation, but it could serve as an indication as to how certain people view credit cards. For some, credit cards are hardly ever used for fear of the impact that use would have on a credit score. For others, using credit cards is necessary just to make ends meet between paychecks.
Most people have several different types of debt impacting their credit at any given time. From mortgages to credit card debt to student loan debt, not every debt a person owes can be approached in the same way. For instance, as many of our Escondido readers probably know by now, student loan debt can almost never be discharged in a bankruptcy proceeding, even a Chapter 7 "liquidation" bankruptcy filing. Although some federal legislators are attempting to change this situation, the current law prohibits this type of debt discharge. So, besides attempts to change the monthly amount paid or the amount of time it takes to pay off the loans, student loan debt is fairly intractable.
There seems to be no shortage of advice out there on how to go about reducing credit card debt and polish up a credit report. With the national economy supposedly making a turnaround from the darkest days of the recession, many people may be keen to take up a plan to pay down debts and build up savings. A recent article suggested a few tips for those Escondido readers who may be so inclined to do just such a thing.
This time of year can be great for thousands of young people throughout the country who are in the process of wrapping up a lifetime of learning. College graduation ceremonies are taking place everywhere, and chances are that many of our Escondido readers know at least one friend or relative who is taking this next great step in their life. However, as the questions surrounding the value of a college education have begun to increase in recent years, some people may not know the reason: balancing the value of a college degree against thousands in credit debt.
Anyone who uses a credit card will probably have questions for their creditors at some point. For millions of Americans, probably including some people in Escondido, credit can be a mysterious concept to grasp, and pinning down the factors that play positive and negative roles can be hard to do. There is no doubt that credit cards can be very helpful if used correctly. However, credit debt is a burden no one ever wants to see get out of control. But, when it does, what are some of the questions our readers should be thinking about asking? A recent article addressed just that issue.