When the recession struck a huge number of people found themselves in financial trouble. It had always been embarrassing to have to admit to problems with money, or shortage of it. Suddenly even though there was no relief from the practical situation of being unable to pay bills, somehow it was less embarrassing because so many had a similar problem.

Some questions are intrusive; anything personal that people feel embarrassed even to be asked. Top of the list is certainly a searching financial question, something like have you much credit card debt? The reality is even though the recession has past and the economy is improving there is still a huge level of personal debt and the figures are rising all the time. Data from the Federal Reserve shows that there has only been one period since data began to be gathered in the 1940s that debt has fallen dramatically; otherwise there has been a relentless increase and that is the current position.

Credit Cards

Credit cards are a case in point. Their introduction provided everyone with a convenient way to shop. Companies provide a credit limit for a consumer and up to that limit consumers could simply hand over their piece of plastic and take away their shopping. Payment was due later and the facility was in place to just pay a minimum monthly amount rather than the whole balance. That is where things can become expensive. A penal level of interest is applied to outstanding balances each month. Analysis by CardHub comparing 2012 with 2013 identified an 8% increase in debt from one year to the next with the 2013 figure being a massive $38.2 billion. In the first quarter of that year $32.6 billion was repaid but in the last quarter $42.1 billion was spent; Americans clearly have no problem with buying on credit.

The current question is one of accessibility. Those people that have a credit card have that card because they have been able to handle money management of their finances and are clearly staying within their credit limit. That is no cause for embarrassment. The problem is more with people who either lost their cards due to default during the recession or who are unable to get a card because of their existing credit score.

While many people seem to be able to satisfy their credit card providers by making appropriate monthly payments others are not quite so fortunate. Those people just able to make minimum repayments may not really be reducing their balances but at the same time they are paying significant interest regularly. That may not be common knowledge to everyone else hut it is surely personally embarrassing?

Consolidation

The solution to this could well be a consolidation loan, a loan that pays off any such balances together with any other debts to leave a single monthly liability at a reasonable rate of interest. It makes eminent financial sense and should reduce monthly expenditure at the same time. A fixed installment loan with a defined term can clear up a number of financial problems at the same time and online bad credit lenders are willing to listen to applicants that have a regular income. Even the application process excludes any embarrassment. It is not a matter of sitting in front of a lender trying to persuade him or her to approve an application knowing that a poor credit score is a reason to refuse the application.

Modern online lenders place far more reliance on an applicant’s current situation than any history. Anyone with regular income that appears capable of repaying the installments for the whole term of a proposed loan is likely to be approved. There may be a slightly higher rate of interest applied to a loan given to someone with a poor credit score but the rate will be appreciably lower than that credit card companies charge.

It is an easy exercise for anyone interested in this idea to log on and find out more. There is no cost in asking questions and getting every last detail before committing. Everyone that is earning money has a chance to improve their financial situation and avoid embarrassing questions in the future. It surely makes sense to act?