Prior to the recession, consumer spending was running high and there was a major credit boom. Now that economic times have become tough more Americans are dealing with personal debt burdens that threaten their homes and way of life. With more on the line now than ever before, the debt burdens we carry have come to bring some disappointing insight into the present and future.
A Broken System
Debt brings two things: (1) financial trouble for the debtor and their family and (2) an opportunity for creditors to take advantage. Debt itself isn’t a problem until it becomes too much to bear or financial hardship strikes. A sense of urgency has set in for many families looking to get out of deep water. Luckily, credit negotiations and other debt relief options are available to help those who are committed get out of debt and regain control.
While the debt collection industry has become more lucrative in recent years, it has also take a turn for the worse. Credit scams and debt relief fraud are more commonplace now than ever before. The Federal Trade Commission fields more complaints and conducts far more investigations into fraudulent debt relief companies than in years past. These troubles have left many deeper in debt than before they started and backed up the court system with lawsuits over fraudulent practices.