(1888PressRelease)
March 02, 2010 - As more and more Americans find themselves overwhelmed by debt, the American government continues to increase the national debt at a rate that economists say is alarming. A new report by ABC News suggests that the national debt will continue to snowball if dramatic changes do not occur in the near future. As it stands, the U.S. national debt is over 12 trillion dollars, with economists estimating that by 2038 the national debt will constitute 200 percent of the gross domestic product of the country.
The national debt affects individual Americans in significant ways. According to Devin Dwyer of ABC News, "Government debt, which fuels the risk of inflation, could make everyday Americans' savings worth less. Higher interest rates would make it harder for consumers and businesses to borrow. Wages would remain stagnant and fewer jobs would be created. The government's ability to cut taxes or provide a safety net would also be weakened, economists say."
Adding to these problems, current American spending practices may leave consumers unprepared and unable to adopt the changes necessary to resolve the budget and debt crisis faced by the U.S. government. According to Dwyer, economists generally agree that budget cuts and increased taxes may be the only way to eliminate the growing national debt. Former Congressional Budget Office Director Rudolph Penner tells Dwyer that Americans who have become accustomed to buying on credit and living beyond their means may have trouble adjusting to the government tightening that many see as inevitable.
Americans may reduce their share of this forecasted doom and gloom if they can commit to adjusting their financial situations now. Consumers can create financial stability in their lives simply by changing their current spending habits. Just as the federal government needs to cut spending in order to reduce debt, American individuals may need to implement similar strategies. Improving finances decreases stress and provides a healthy foundation that will not be easily shaken by changing economic factors or government policies.
The first step towards financial health lies in reducing debt loads. One option for consumers is to contract a debt settlement company. Debt Settlement programs work by negotiating on a consumer's behalf to secure settlement on their unsecured debt. With programs typically lasting three years or less, debt settlement allows a consumer to pay off each creditor for less than their current balance with one lump sum payment. The settlements are binding, and ensure that no further collection efforts or legal action will be taken on the settled accounts.
Debt Settlement America (DSA) is headquartered in Dallas, Texas and services clients across the nation. Since its inception in 2004, DSA has established itself as a leader in the debt settlement industry. DSA is a member of the US Chamber of Commerce, the Texas Association of Businesses, the American Bankers Association, and a Gold level member of the International Association of Professional Debt Arbitrators. DSA has been recognized as a TASC Best Practices accredited member company for the past three years.
To learn more about Debt Settlement America, or to receive a consultation free of charge, go to www.debt-settlement-america.com or call 866-387-3328.
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