Debt Views

With the way the economy is going these days we all will be affected by consumer debt one way or another. Maybe you don’t have debt but you own a business. I am sure business owners are having problems collecting in money owed from past projects. That said I wanted to explore why our consumer debt is getting so high and as business owner how can we collect on past debts.

Mortgages

The mortgage industry has allowed the normal consumer to purchase in some cases more house than they can afford, and in some cases allowing the consumer to take out loans that were shady and in bad times unlikely to get paid back. I am not talking about investors that took out interest only loans knowing that they are taking a chance in the hope to make a windfall of money. No, I am talking about people that expected to keep their homes thirty years but just did not have enough money to afford such a large home of their dreams. These kinds of investments should not have been allowed. But since they were allowed we the consumers have to fill the grunt of the situation. Forecloses are rising and these people are not injecting money back into the system to keep our economy running. Thus, business owners have to raise prices to compensate.

Gas Prices

I have never seen the kind of prices rate on gas prices as they stand now. In my area a gallon of regular unleaded gas is $3.21 per gallon. How does the government expect a regular citizen to keep up with the cost of gas. Gas at this time takes such a chunk out of working individuals’ budgets, that we don’t have enough extra money to purchase wants and barely enough to purchase needs, needs like food and shelter for our families. Gas prices affect so much. Food has to be trucked to supermarkets. These trucks have to have gas. The distributors don’t absorb the prices. They pass the price on to the consumer also, thus, raising prices on needed food and consumables.

Online Debt Collection

What does all this lead to, more consumer debt? Business owner have to resort to online debt collection agencies to collect on bad debt. These agencies will collect the debt but will online release a portion back to the business. The rest goes to the debt collection agency for fees. It is all a cyclical cycle. Someone has to bite the bullet to stop the cycle. Someone has to find a way to lower the gas prices back down or get an alternative resource to power our vehicles and someone has to put better regulations on the banking industries so they don’t get away with allowing loans to go through that some people will not be able to pay.

There has to be a change. Big business does not have to drain each and every dollar out of the normal consumer just to get richer. They are already rich in the first place. Have a conscious and look at the big picture, because even though they may not believe this eventually all of this will trickle up to them one way or another.