You may sometimes be tempted to think of America (and Canada) as this large and powerful island of financial security apart from the rest of the world; but the truth is, occurrences like the near-collapse of the Greek economy and the slight devaluation of the British Pound do affect the financial straits of this country. Therefore, they also affect your chances of relieving your debt, since banks, lenders and the myriad of other financial institutions are responsible for aspects of the economy out of your control, such as interest rates and how muchyou can borrow depending on the debt you already have.
Settling Your Personal Debts
There are general things you can do to help settle your debts in a personal sense, such as canceling or cutting up credit cards and eating in more often than you eat out. However, for anyone who has ever experienced the kind of debt you incur from years of education and student loans, mortgages, large net stock market losses, or debilitating car payments, this won’t likely be enough. Getting out of debt has to be a serious commitment, the kind where you seek help from a debt reduction outfit if necessary, because they have a plethora of ways you to help you get out of debt.
Real Estate Debt
The recent and almost catastrophic – some people wouldn’t use ‘almost’ – collapse of the real estate bubble was actually due to the international debt crisis and its affect stateside. The low interest terms of the money being infused into our economy caused some financial institutions to be greedy and irresponsible with the loans they originated. When it came time to call these in and it couldn’t be done, the government had to swoop in and rescue the faltering banks, which led to even greater debt.
As for you; you can start on the road to getting out of debt by protecting yourself as much as you can from these kinds of actions, by doing things like consolidation, settlement, management, credit monitoring, declaring bankruptcy if necessary, following a strict budget, or prioritizing debt payment instead of spreading the dwindling wealth around to all of them. Of course, you would be even better off if you combined several of these compatible solutions. The end result should leave you in a better personal financial state, not affected as much by the ups and downs of the international financial markets.
Jeffrey Sterner writes about personal financial issues for a variety of financial and debt related blogs.