Dealing with Debt

By : David Jackson

Debt is a four-letter word to many people. It’s a major source of stress for an ever-increasing number of consumers. But unless you’re independently wealthy, debt is usually a necessity if you want to make a major purchase such as a home or an automobile. Consumer debt is on the rise, and so are delinquencies. More and more consumers are turning to credit counseling to get their debt under control. And even with the tighter restrictions on bankruptcy, people are still filing. These statistics paint a grim picture of debt, yet consumers are still using their credit cards and taking out loans. The fact is that debt is not such a bad thing in and of itself. It can help us get the things we need and want. The problem lies in accumulating too much debt. If we’re not careful, we can get in over our heads. And once we do, it becomes harder and harder to get out of debt.

By educating ourselves about debt and determining what is a safe level of debt based upon our income, we can avoid falling into a debt trap in the first place. And if we’re already in too much debt, there are steps we can take to reduce it.