Consumer Debt Beginning To Climb Again

Consumer debt levels are rising again after years of decline following the Great Recession. Americans are taking on more credit card, auto, student loan, and mortgage debt. If you're unfamiliar with some of these terms, our debt dictionary can help enhance your financial literacy

While debt can be useful when managed responsibly, it can quickly become overwhelming. Many consumers struggle with burdensome monthly payments and high-interest costs. Debt can negatively impact all aspects of your financial life.

If you feel trapped in a cycle of debt, know that you are not alone. One effective solution might be debt settlement. Discover its benefits and how it can transform your finances."

Millions of Americans face the same challenges. The good news is that with commitment and the right help, you can break free of debt and regain control of your finances.

This guide from the debt relief experts at Pacific Debt will walk you through practical strategies to tackle debt and find financial freedom. For a more comprehensive overview of debt relief options, check out our complete guide. 

You'll learn ways to budget, increase income, reduce interest costs, and seek legitimate professional assistance if needed. With hard work and smart money management, you can reduce stress and eliminate debt. Don't wait - your financial future starts today. Pacific Debt is here to support you each step of the way.

Revolving Debt Rebounding After Years of Decline

After nearly three years of declines, revolving debt is beginning to climb once again according to the US Federal Reserves. The Fed’s report shows that total consumer revolving debt, which includes credit cards, increased nearly $2 billion dollars in March from February. Total Consumer Revolving debt now stands at $796.1 billion

While $796.1 billion may sound like a staggering figure, it is important to note that this is substantially down from a peak of $974 billion reached in August 2008. The significant drop in consumer revolving debt is a direct result of the lingering recession, bank charge-offs, and consumers focused on debt reduction.

If you are still struggling with credit card debt and looking for options for resolving your debt call us today at 1-877-722-3328 or email inquiries@pacificdebt.com. One of our debt specialists will review your situation and options, and if appropriate discuss our NO UPFRONT FEE debt settlement program.

Create a Realistic Budget

Tips for Creating Your Budget

• Track your spending for 1-2 months to understand where your money is going. Use a budgeting app or spreadsheet.
• Categorize your expenses as needs vs. wants. Focus first on reducing discretionary spending on wants.
• Build your budget around needs like housing, utilities, food, and transportation. Budget a smaller amount for wants.
• Automate bill payments and savings contributions so they happen without you thinking about it.
• Revisit your budget monthly and make adjustments as needed. Build in rewards when you stick to your budget.
  

Increase Your Income

In addition to cutting expenses, increasing your income can provide more money to pay off debts faster. 

Here are some ideas:

• Ask for a raise at your current job if you've taken on more responsibilities. Provide evidence of the value you bring.
• Look for a higher-paying job in your field. Update your resume and network with contacts about openings.
• Take on a side hustle with a flexible schedule like rideshare driving, tutoring, freelance writing, etc. Leverage skills you already have.
• Sell unused items around the house that you no longer need through garage sales, Craigslist, eBay, etc.
• Rent out extra space in your home through services like Airbnb.

Reduce Interest Rates

If you carry a balance on your credit cards, high-interest rates can make it very difficult to pay off the debt to reduce the interest rate and pay off the balance faster.

Here are some strategies:

• Call your credit card company and politely ask for a lower interest rate. Provide details on your payment history and financial situation.
• Transfer balances to a 0% APR balance transfer credit card. Pay off the balance during the 0% intro period.
• Consolidate multiple credit cards into a lower-rate personal loan or home equity loan. This reduces rates on all cards.
• Pay more than the minimum each month to pay off cards faster and reduce interest paid over time.

FAQs

Conclusion:



Managing and eliminating debt takes commitment, but it can be done. With the right mindset and professional guidance, you can break the debt cycle and regain control of your finances.

Don't wait - take action now to resolve debt on your terms. You deserve financial freedom. Reach out today to get a free, no-obligation debt consultation. Together, we will create a customized plan to fit your unique situation and budget.

The road to a debt-free future starts today. Imagine how it will feel when the burdens of debt are lifted. Pacific Debt will help guide you to that moment. Contact us to get started and let the debt relief begin!

If you are struggling with overwhelming debt and want to explore your debt relief options, Pacific Debt Relief offers a free consultation to assess your financial situation. Our debt specialists can provide objective guidance to help find the right debt relief solution.