According to a recent report by The Hartmann Group, private sector debt in the United States totals $38 trillion dollars, or roughly 2.1 times US GDP. This is more than twice the government debt total, and includes all corporate and personal debt. The total does not include banking derivatives, which are nearing a level that is incalculable.
Past and Present US Debt
After WWII, the United States government invested greatly in human resources. It directly spent money on infrastructure and higher education. The investment worked because of a concerted will toward growth.
The trillions in personal debt now cannot be blamed on war. It is a result of a cultural desensitizing to the compounding effects of spending more than is earned. Yes, a college degree can cost as much as $50,000 per year, but when did it become acceptable to consider fees like that as a normal “part of life?” How do minimum wage workers get approved for $300,000 mortgages? There’s plenty of causation and blame to go around!
The Current Face of Personal Debt Relief
It might seem strange, but the United States government has basically given control of debt relief back to the private sector. They have passed legislation that allows third party mediators to enter into debt and crediting agreements between private individuals, businesses and lenders. Because of the present economic environment, lenders are waking-up to the fact that default favors neither the borrower, nor the lender. Third party debt consolidation and refinancing options are now widely accepted and preferred.
A private individual with a poor credit score and a protracted history of accrued debt has little legal ground to leverage deals with lenders. Third party consolidation and refinancing services have legal inroads to constructing new agreements between lenders and borrowers. These types of services are widely available for debts like credit card balances, underwater home loans, unsubsidized student loans and probate matters. For subsidized student loans, there are a host of new government allowances that can reduce the burden of repayment. These programs are based on factors like income-sensitivity and time spent in public service.
New allowances that make private debt more manageable for the borrower, and more equitable for lenders are extremely useful. The problem is, people do not know how to go about searching for debt relief help and other timely financial assistance.
Where To Start Looking
It is unlikely that government-affiliated offices and professionals will readily provide information about debt relief. So, don’t rely on corporate tax preparation services, or labor offices to find information. Instead, look to modern communication platforms that are a hotbed for mediation experts. Most debt relief services with the ability to effectively counsel private parties on debt relief and consolidation are independently funded, or operate on grants. Their consumer exposure happens in realms where normal individuals congregate and relay information.
Private CPAs, college financial officers, legal defense teams, talk radio and directed Internet searches are the best way to find real help with debt relief.
When using the Net, instead of searching for help with subjects like:
- “how to avoid debt,”
search for announcements centered on ideas like:
- payment reduction
- income sensitive
- third party loan negotiation
- new loan adjustment rules.
Lenders (especially the government), prefer repayment over default. Seeking the help of independent loan payment consolidation and repayment negotiators is a powerful tool for any private individual with the desire to do what is right, but needs a high degree of extra legal help.