Kingdom Financial Principles Speaks Frankly of $2.02 Trillion in Consumer Debt
Consumer debt escalated to a record $2.02 trillion in March according to recent Federal Reserve figures. The Federal Reserve report, says Jeannine Aversa of the Associated Press, includes credit card debt and loans for such things as boats, cars and mobile homes."
Burlington, VT (PRWEB) May 18, 2004 --Gene Jolley, President of Kingdom Financial Principles (KFP) and creator of the Rapid Debt Reducer software, is well aware of Aversa news release that carries an overall optimistic tone. In fact Jolley is not surprised by increased consumer debt but he is concerned: These consumers are giving away any hopes of a secure financial future."
While Aversas story Americans Increase Borrowing in March" quotes Federal Reserve Chairman Alan Greenspan as saying Short of a period of overall economic weakness, households with the exception of some highly leveraged ... borrowers, do not appear to be faced with significant financial strain," Jolley wonders how increased debt can be anything but increased strain on an already debt burdened America.
Getting out of debt is the thrust of Jolleys ministry as he conducts seminars educating consumers of the power in financial freedom. Contrasted with the Federal Reserve report where Demand for revolving credit, such as credit cards, rose at a brisk 4.1 percent rate, or $2.58 billion, in March," Jolley says Paying off debt creates a guaranteed return on investment."
The typical debt situation of a couple is, according to Jolley, a home ($138,972), 2 autos ($25,430.43), and credit cards ($7,500) for a total debt of $171,902.43, total payments of $1,794.69, where a total of $380,402 is paid, of which $207,472 is interest and all of which is paid over a period of 29 years 4 months.
Jolley knows it makes no sense to stay in debt when there is a logical and sound method available to rid oneself of financial burden. In the debt example above Jolley shows how to payoff the debt in 11 years saving $171,902 in interest as well as accumulating $1,125,379 in retirement savings through a method called debt stacking.
Bridging the gap between the way one grows up thinking about debt and how to actually live debt-free is a daunting task because, as Jolley knows, old habits die hard. Its difficult to get the message across to consumers who have been misled by the lure and pseudo-prestige of easy credit. Debt is debt and the deeper one gets the longer it will take to climb out from under its weight." With loads of heavy debt and consumers demand for more its not surprising American debt hit the record $2.02 trillion. Consumer spending may stimulate the economy but if that economic boon is in the form of credit then what consumers are really spending is their financial future right now.
Another danger Jolley sees concerns debt management by many overrated credit counseling companies. Jolley warns Many of these type programs have a high failure rate, charge underlying fees and work for the interest of the Credit companies not the consumer. Despite advocating a positive on a consumers record to use such a counseling service, Jolley insist it is more of a negative that stays on the consumers credit report for up to 10 years and often times it is looked upon as bankruptcy by the credit companies." Jolley states many of these companies are under Federal Review for fraud" and adds Not all are bad." If you find yourself overextended Jolley recommends:
· Seek advice from local banks and professional financial counselors
· Always get the facts from who you are dealing with. Are they listed with the Better Business Bureau? How do they make their money: commissions, loan fees, etc.?
The Federal Reserve report acknowledged for March a 5.71 billion dollar increase in consumer credit over the previous month touting a record 2.02 trillion in consumer debt. The staggering figures shadow an equally staggering problem deeply rooted in the fabric of the American society—a nonchalant attitude about debt. Gene Jolley (http://www.GeneJolleySeminars.com )is serous about debt and is taking steps to help others get serious as well.
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