You know these are boom times for debt consolidation companies when even superheroes can’t keep their jobs. After all, when people are out of work, they are more likely to turn to debt consolidation to manage their mounting bills. It’s not certain if Marvel Comics’ Spider-Man will take out a debt consolidation loan. But he may have no other choice.
Reflecting the Bad Economic Times
In the latest storyline in the Amazing Spider-Man comic, Spider-Man’s alter ego, Peter Parker, loses his job as the staff photographer for the mayor of New York City. He also struggles to find a new job anywhere in the metropolis. In this case, Spider-Man isn’t unlike the many U.S. workers struggling to find their own employment. The national unemployment rate has finally dropped under 10 percent, the uncomfortably high figure at which it stood for large portions of the second half of 2009. But the rate, as of February, still stood at a far-too-high 9.7 percent. That is bad news for job seekers: It means that the competition for jobs is extremely high. It’s little wonder that Spider-Man – who’s notoriously unreliable, what with his habit of slipping into his red-and-blue long underwear to fight Green Goblins, Doctor Octopuses and Vultures – has struggled to find new employment.
Good for Debt Consolidation Companies?
Of course, unemployment isn’t bad for all industries. The debt consolidation industry, for example, usually sees business rise as unemployment rates soar. The reason is obvious: People rely more on their credit cards when they don’t have steady jobs. After several months of this, their levels of revolving debt rise too high. Often, their option then is to take out a debt consolidation loan, which reduces all of their debts to one monthly payment that they can afford. Debt consolidation can be a useful tool for consumers struggling with debt. It can also be dangerous, though.
Due Diligence Important
Like all industries, the debt consolidation business has its share of bad apples. These companies will take consumers’ money and then do little to help them improve their dire financial situations. The reputable debt consolidation companies, though, will explain, in writing, exactly what fees consumers will pay, what interest rate their new loan will come with and how long it will take them to pay down their debt. If a company is evasive on any of this information, consumers should avoid working with them. Consumers shouldn’t feel guilty, either, about taking out these loans: Remember, even the high-flying Spider-Man might soon be joining their ranks.