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Consumer Debt ReliefDebt consolidation is one easy way for consumers to get some quick debt relief without the hassle of going through a credit counseling agency. Debt consolidation affords consumers a way to easily cut down on credit card debt. Debt consolidation options focus on consumer debt. Consumer debt is divided into revolving debt or credit debt, such as credit card balances, and non-revolving debt, such as car loans and student loans. Revolving credit is available as needed for a wide range of goods and services with no specific purpose. Non-revolving debt is debt acquired for a specific purpose, like to purchase furniture or a car. Consumer debt does not include any debt secured by real estate. A home mortgage is not consumer debt. American consumer debt reached $2.4 trillion in mid-2006. One way to evaluate your level of personal debt is to calculate your monthly debt-to-income ratio or, more specifically, consumer debt to disposable-income ratio. Your disposable-income is the amount left from your paycheck after all required monthly bills are paid. Your consumer debt is all your payments on revolving and non-revolving debt. Divide consumer debt by disposable income. If the result is at or over 100, you have problem debt, and should seek a solution through debt consolidation. In the United States, the average consumer debt in the 1980s was 65 percent of disposable income, 85 percent of disposable income in the 1990s and today it stands at 110 percent of disposable income. If you have problem debt, consult with a debt consolidation company to see what debt consolidation plan will enable you to become debt free. Author Bio: Allison Roberts is a graduate of the University of North Texas Department of Journalism. She has experience in agency and in freelance public relations. Allison currently writes for Credit Solutions and she is completing an unfinished work of her late grandfather. For more articles by Allison on bankruptcy, visit http://www.creditsolutions.com. Credit Solutions is offers a leading debt consolidation alternative.
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