Those with debt woes should look into all available options before committing significant funds to debt consolidation services.



Household debt is at a record high relative to disposable income. For many, debt is considered a normal part of life. This time of the year consumers think with their hearts instead of with their minds. The after effects can leave them overwhelmed with regret and anxiety.



Consumers are planning to spend an average of $763 on Christmas gifts this year. This estimate is up modestly from approximately the same time last year, when the average projected spending was $730. These data suggest that retail spending this holiday season will not be depressed and may exceed normal seasonal patterns -- despite what some observers have considered to be a negative economic climate.



The top-three reasons given for rising debt according to American Demographics which tracks consumer trends are that :



1. People are living beyond their means (26 percent).

2. Credit cards are easily obtained (17 percent).

3. Incomes aren't keeping up with expenses (17 percent).



Consumers have relied on debt consolidation services, but for most it's only added to the confusion.

Once someone consolidates into one debt, they can sometimes convince themselves that they've dealt with the problem when, at best, they've been on a treadmill going nowhere.



The education process is by passed and consumers remain "debt dumb". The way to get out of debt is by changing habits. Consumers need to commit to getting on a written game plan and sticking to it.



Consumers Must Be Educated By Resources That :



1. Providing step by step instruction thus educating consumers to become "debt smart"

2. Helps consumers to determine debt priorities, and establish reachable short term goals.

3. Educates consumers on how to save on necessary purchases and how to avoid unnecessary debt.

4. Focusing on empowering families to set up realistic budgets while celebrating their successes.

5. Teaching powerful credit strategies that boost credit scores systematically.



Any debt resource must provide both a comprehensive and detailed approach to consumer debt, while avoiding problems created by debt consolidation. Consumers must become their own advocates through education.

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