Economic conditions make financial management difficult
There are numerous people involved in a never-ending battle against all kinds of financial debt. Especially since 2008, with the economic meltdown and all of the retrenchments and the collapse of the property market, many people simply no longer know how to cope under difficult economic conditions. The problems with financial debt are so widespread that it has even reached the corridors of Congress and that is why a new fico score system has been implemented. People who have been struggling with medical debt and those who have relatively limited credit histories will find that the new scoring system are more lenient towards them and it has become slightly easier to qualify for credit cards or for purchases of motor vehicles.
The all new fico score 9
The new fico scoring system which is known as score nine has finally been accepted by the major creditors and it is widely agreed that this scoring system is a significant improvement over the previous system which has been in force since 1989. This new system looks differently at medical debt because it is now widely accepted that people can willfully choose to make a loan in order to purchase a motor vehicle, but no one will choose to fall sick and struggle with medical debts. And this is why it is totally unfair to treat people with medical debt in the same way as people with other types of financial debt are treated. In most cases, people with medical debts could expect to see an increase of 25 points on their credit score now that the new fico system has been implemented. Statistics indicate that over 60% of people filing for bankruptcy do so because of medical debt.
The debt consolidation option
Many people who find themselves in a situation where they are consumed with debt eventually start to consider the option of debt consolidation. However, a very large portion of this people soon realize that they often do not have the necessary knowledge to implement an effective debt consolidation strategy and because they lack an effective strategy, such consolidation processes are often a failure. The reality of the matter is that unless you have a well devised plan in place, debt consolidation will simply not work in the way that you have expected. However, companies such as http://debt-consolidation-services-review.toptenreviews.com have been specializing in this area for many years and have gained a significant amount of experience in assisting people with the problem of financial debt.
Are you serving a creditor?
It has been said that as long as you are paying a debt, you are a servant to the person to whom that debt is owed. You will only be free again once such a debt has been settled in full. Thousands of people are finding themselves in a situation where they are literally drowning in a sea of debt and all of these people have been searching for ways in which to resolve that debt situation. Debt consolidation could be the answer if a proper strategy is in place and reasonable objectives have been devised in order to ensure that your financial management program stays on track.