Consumer debt is a big part of the economic reality of life in the United States. AS of June 2013, total consumer debt in the United States totaled $2.84 trillion. The average consumer household has $15,950 in consumer debt. Most of these consumers get constant harassing phone calls from debt collectors, if you are one of the people that gets called constantly then you need to make a Cease & desist letter which is sent to the debt collector telling them that they are not allowed to contact you again. If you want to do this here is a Cease & desist example letter.
There are three programs that consumers can utilize to deal with excessive personal debt. These include the following:
- Debt settlement
- Debt consolidation
- Credit counseling
It can take 42 months for debt settlement to pay off this average of $15,950 in consumer debt. Debt consolidation or even credit counseling could take up to 60 months. Addressing debt with any of these programs can impact lives for years.
Regardless of the pain and toil it might take to overcome consumer debt, it is critical that you first take care of these debts before you can start focusing on value investing.