Consumers may be turning to debt relief services in greater numbers if a recent survey by Citi is to be believed. According to the survey, 62 percent of U.S. residents believe that the economy has not yet hit bottom. And consumers are getting more pessimistic as time marches on. Back in March, Citi took a similar survey. At that time, 59 percent of consumers said that they believed that the economy had still not hit bottom. These consumers might be looking at their own debt levels and forecasting future problems for themselves. After all, with the national unemployment still hovering near 10 percent, a large number of consumers are either out of work or seeing their annual incomes fall. These consumers have understandably increased their credit card debt. And when that happens, rough financial times and debt consolidation help usually isn’t too far off.
Consolidating Debt
Many consumers today are in need of debt consolidation advice. They’re receiving calls from collection agencies. They’re missing credit card and other loan payments. Their credit scores are plummeting. For them, bad credit debt consolidation might be an only option for debt relief. It’s true that debt consolidation isn’t exactly a “Get Out of Jail Free” card. It comes with some serious consequences: For one thing, consumers will see their credit scores fall if they work with a debt consolidation company. They’ll also end up paying sometimes high interest rates for their debt consolidation loan. But for many consumers, these negatives will be worth it to erase the stress of spiraling debt levels.
Unsurprising Numbers
The numbers in the Citi survey aren’t surprising. Most consumers remain glum about the performance of the national economy. Even though the Great Recession is officially over, and the U.S. economy started growing again in the third quarter of 2009, many consumers still feel as if the country is suffering through a financial slump. This won’t change until unemployment falls to more normal levels. It’s little surprise, then, that 62 percent of individuals reported that it will take at least two to three more years for their own households’ financial situations to stabilize.
Looking Toward the Future
For many of these individuals who are looking toward better times in the future, debt relief remains a priority. That’s why it shouldn’t be surprising, either, to see a boost in business for companies that provide debt consolidation help. The Great Recession hasn’t been good to too many businesses in the United States. Companies that provide debt relief, though, rank as one of the few exceptions to this rule.