Consumer debt Crisis continues to rise
According to the Federal Reserve, debt rose for the 20th consecutive quarter in the second quarter of 2019 and has to continue to rise since. Consumer debt puts the vast majority of average working people at risk. As little as a single missed paycheck can suddenly make those debts unmanageable, leading to serious financial stress, bankruptcy, and real potential of skyrocketing abject poverty in the coming years. However, the internet may be providing solutions where they may have previously been much more difficult to find.
Photo by Karolina Grabowska from Pexels
A better eye on debt
One of the ways that the internet is able to help more people manage their debt is by making it a lot easier to gather the data, see with their debt actually is, and to formulate a plan of attack. For instance, this can be done with sites like https://www.experian.com/consumer-products/compare-credit-report-and-score-products.html that can help individuals find out their credit reports and score to see if there are any outstanding black marks that still need to be addressed. Furthermore, there are apps that allow individuals to track bill statements and how they relate to debts that they are carrying. As such, by tracking debts and how much interest is causing them to grow, they can focus on paying the highest-priority ones, first.
Improving earning, reducing spending
While current circumstances are affecting paychecks across the board, including a 25% earnings decrease on average for freelancers, there is no denying that the internet is generally making it easy to earn more money. Many people are able to pick up side hustles from their own homes by working through the net than ever before. Furthermore, budgeting apps and software make it easier to track and reduce spending where possible, thus freeing up the cash that’s necessary to eliminate debt naturally. It still requires a lot of work to find that free cash, but at least the process is made easier by apps that can track every inch of your finances for you.
Lending is becoming easier than ever
Before the internet took over, banks were the primary lender of all cash. Given how strict the controls on lending from banks can be, this means that shuffling debt around to make it easier to pay off could genuinely be very difficult. However, nowadays, the internet has democratized lending and borrowing to a much greater degree. As such, options such as opening credit cards or using debt consolidation to pay off debts have become a lot more widely available. While this doesn’t erase debt from your balance, it can make it more manageable by capping the interest rate or changing when exactly you have to pay everything off by.
Advice is easier to find, too
It can, at times, be difficult to find the right piece of advice amongst all of the scams and reductive tips that seem to make debt easier to erase than it really is. However, there are legitimate services like dtss.us/management.html that are making it a lot easier to find advice on how to deal with debt. Many of these teach specific methods to help pay off or even cancel your debt outright. Other online counseling services can help you get a better grasp of your overall financial situation, teaching habits that better allow you to set aside the money that’s needed to pay your debt off bit-by-bit. Dealing with debt alone can make it feel truly insurmountable, so it’s recommended you take what advice you can get.
Debt settlement services can help
Negotiating with your creditors is a legitimate approach to having your debt reduced, but a lot of people might be rightfully wary about how effectively they can defend their position and work out an arrangement that works to their benefit. While debt settlement is not a perfect solution and does come with some caveats, such as a heavy dent to your credit score, it may still be worth looking at services like curadebt.com/debt-settlement-program/ who can argue on your belt. There are also plenty of online “scripts” that you can find that can help you put forward a more convincing argument yourself. However, it’s important to know that you don’t have to go alone if you’re worried about messing up.
The solutions above mostly apply on an individual level. Individuals can find that they have more options, in general, when it comes to fighting debt. However, many agree that societal approaches must also be made to reduce how much consumer debt is accrued in the first place.
