RT’s Anastasia Churkina reports on the record-high college loan debts that American graduates are faced with, exploring the real faces behind official statistics. What do you do if you owe over 100000 dollars, but don’t have a job?

Video about 1 in 25 Fathers not Biological Parent, a study revealing that money does buy happiness, home sellers slashing prices, US combat in Iraq, debt ruining relationships, the Las Vegas exodus and Obama calling for more infrastructure spending. Sellers Cut Prices on 50% of Homes www.housingwatch.com All signs point to continuing Las Vegas exodus www.lasvegassun.com Despite formal combat end, US joins Baghdad battle apnews.myway.com Obama calling for more infrastructure spending apnews.myway.com Money can buy happiness — but only up to 000 www.msnbc.msn.com How Debt Can Destroy a Budding Relationship www.nytimes.com 1 in 25 Fathers not Biological Parent menshealth.about.com

A ticking time bomb of American debt. Over 0 billion are owed by college students in the US with thousand more added on every second. The most traditional financial baggage for Americans was credit card debt. For the first time, debt belonging to college students has over taken that number one spot. “Students graduating in 2008, 2009 and 2010 are facing the worst job markets in a generation at least. And so you have people with more debt that we have ever seen before, who are having a harder time finding any job, let alone a job that pays them enough to somehow pay off all this debt.”

Many expect a market crash to occur in October 2009. Some even expect a currency reform for the US Dollar and other currencies. Clearly unemployment levels and wage development show that the consumer can not spend more but rather less.

Before you start going into consolidation loans, make an appointment with the citizens advice bureau who may be able to come to agreements with the companies you owe money to.

This wont cost you any fees.

Student Loans : Student Loan Consolidation

www.bills.com Debt settlement is an extreme solution suitable for serious debt issues. Learn how it works in this debt settlement video with Brad Stroh of Bills.com. Debt settlement is the process of negotiating with creditors to accept about half of the total debt you owe. In order to qualify, you must be delinquent on your payments and will probably face aggressive collection attempts. This solution is only appropriate for serious debts with no other solutions. If choose this option, look for a reputable debt settlement company to ensure your debt is settled fairly. Visit Bills.com for more personal financial information and advice.

If a consumer is only making the minimum payments, which do not reduce the principal, a debt consolidation seems to be an answer to a prayer especially when there are multiple creditors, high interest rates, and the tendency to juggle payments just to keep the lights and gas on and avoid bankruptcy. A consolidation loan can be the proverbial “balm in Gilead”, but consumers need to be informed; there are two sides to the coin, both positive and negative aspects to this solution. A band-aid will not heal a broken leg, and debt consolidation is not a “quick fix” to poor spending or budgeting habits.

One primary advantage is that proactive debt reorganization can help to raise the credit score over time. A high credit score will ensure a lower interest rate if the consumer is considering purchasing a home in six months, for example, and will result in saving thousands of dollars over the duration of the loan.

A simplistic example is the client doesn’t have to literally throw bills up in the air and pay the ones who land face up now and the remainder later. With a consolidation, there is a single bill, due date, and interest rate. Late payment fees and penalties, which can be significant, are eliminated.

There is a consequential disadvantage for consumers who utilize equity loans from the same mortgage companies. They inadvertently compromise their primary asset, their home. This debt consolidation loan becomes a secured loan and missed payments could result in the loss of the asset. Furthermore, an equity loan can extend the mortgage duration or loan term from ten to twenty-five years depending upon the specifics of the loan.

Another disadvantage is the tendency to overspend. Borrowers must be careful not to create more debt by starting to use their credit cards indiscriminately. Many are lulled into a false sense of security by having only one monthly payment and having money remaining afterwards They make unnecessary discretionary credit purchases, irresponsibly create additional debt, and demonstrate poor budgeting and spending habits that caused the problem initially.

Consumers must make wise, educated, lender choices to prevent this remedy becoming a disadvantage. Many small lenders will sell the loans to other lenders who may not be conscientious or conceivably unscrupulous. The result may be a higher interest rate or an escalation clause that could mean financial disaster. Therefore, the consumer must choose the lender carefully and wisely read the fine print.

Debt consolidation is a method to resolve excessive debt issues and regain control of one’s finances. However, the consumer must be astute, informed of both the pros and cons or the advantages and disadvantages before making a decision. Every choice has a consequence.

The Best Debt Consolidation Loan

Steven Keen reiterates what I said one year ago with private sector de-leveraging being the major force that is unwinding at the moment with the accrual of too much private sector debt. This debt has to contract along with asset values and GDP. However, Keen does not go into the “loss of confidence” we are seeing. This loss of confidence may lead to a decline in international trade, a run on debt, a loss of international savings, and a currency crisis. Its as if the fingers of inflation are tied into a deflationary spiral due to debt collapse as goods may become inaccessible. One year later my forecasts retain their predictive efficacy.

CareOne does both credit counseling and debt settlement. If you’re going to do credit counseling, then go with CCCS. Debt consolidation…the act of deliberately defaulting on your credit cards to settle your debts for less, destroys your credit rating.

See this link about CareOne:

http://www.consumeraffairs.com/debt_counsel/careone_credit.html

Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

While an accredited credit counseling program like CCCS can be good you need to be aware that these programs are funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. I advise against using CCCS if you are drastically past due or have already complete defaulted on most of your credit cards….If this is the case then you are better off negotiating settlements directly with your creditors. You may be able to settle in the 25% – 50% range if your cards are already defaulted. If you settle, get all terms in writing. They will probably want a large lump sum rather than small payments over several years. CCCS will not negotiate settlements because they are funded by the credit card industry.

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy.
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Stay away from any “debt consolidation” company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.

Mortgage Choice – Refinance to consolidate your debts