As you know, there is a major debt crisis occurring in Chicago and across America at the present time. The fact of the matter is that this crisis has been caused by several different factors, most of which could have been avoided. However, most of these causes were not avoided and the end result is a growing mountain of debt not only for the American government but also for the average American family.
Most people in the know will tell you that this debt crisis is the worst economic crisis in the United States since the Great Depression in the 1930’s. The fact that so many large financial institutions failed along with the fact that the government has had to bail out so many banks has led to a decline in the stock market. The effect of all of that is that the housing market has failed which has led to an enormously high amount of homes that have been foreclosed on.
Things such as inflows of foreign funds coupled with low interest rates created an atmosphere where most people could get approved for debt consolidation loans or a mortgage with ease. The fact that so many people were able to get so much credit in such a short period of time led to a huge spike in the number of houses that were being built on a yearly basis. At the end of the day many companies around the world invested in the American housing market. When the average family was unable to pay their mortgage and headed into foreclosure there was damage done to financial institutions all over the world. The securities that were tied to the American housing market hit an all-time low thus perpetuating the debt problems in America and around the world. The major lending companies reported huge losses for the first time in years. This resulted in credit being hard to come by for the average person. The lending institutions tightened their grip on exactly who they would lend money to and when. The effect of this was that the strength of the banking industry as a whole declined rather rapidly.
The sad part is that some people say that the Illinois debt consolidation agencies and lending institutions failed to realize that this type of activity could have long term damage on the American economy. Furthermore, the government did not do much in order to slow down the rate at which these institutions were lending money to the average American thus putting them into debt. The debt problems in America may have been avoidable with the proper amount of regulation and legislation.
The debt problems in America are mainly due to the crumbling housing market caused by the excess amount of credit that was made available to the average person. Had the people in charge of government been able to identify the fact that institutions such as investment banks were providing large amounts of credit that was going to come back and put people into debt the country may not be in the situation that it is in today.
If you are a person that has a debt problem one of the things that you may want to do is look into debt consolidation at a site like debtquotes.com that offers free consultaions. A credit card consolidation service may come in very handy to people that owe a large portion of money to more than one creditor. By putting all of your debt into one loan there are a few advantages that you will have. First off, you will only have one monthly payment to one creditor. This will mean that you do not have to deal with dozens of different creditors who are constantly hassling you for money. Second off, you will have the chance to get a lower interest rate. The lower rate will mean that you are paying less money each and every month in total. If you think that a debt consolidation loan is right for you then take the time to shop around. You may be able to find a solution that more than fits your needs.
One of the major drawbacks of going into debt and not being able to repay it is that your credit will become severely damaged. In fact, your credit could even become damaged even if you are repaying your debt- this depends on how much debt you are in. In order to keep a close eye on your credit you will want to get a credit report once each year or so. You can get a free credit report that will give you all the information that you need to know from the three major credit reporting bureaus. Analyzing that data will allow you to make sure that your credit is always in good shape. The best place to find good information on where to obtain a free credit report is online. Take a few moments to search around on the internet for the places that provide people with the best credit reports for free.
One of the great things about free credit reports is that they can tell you if you have too much credit card debt. Credit card debt is one of the major things that can really ruin your credit score. If you have credit card debt there are a few things that you need to do. First off, you could talk with a credit counselor. These people will be able to give you options that may allow you to minimize the amount that you owe. Second off, can look into adding your credit card debt to one of those debt consolidation loans. This will allow you to have a lower interest rate as well as give you peace of mind that you are getting your credit card debt off of your credit report.
Keep in mind that your individual debt crisis will not improve without you making some sacrifices and positive choices. As the debt problems in America begin to get better so can your personal situation if you choose to take the appropriate action.