Although credit card debt dropped in February, non-revolving debt has made a sharp spike and has been the largest gain since 2011 comprising of almost $20 million after the $12 billion increase in January. Non-revolving debt includes student loan debt, auto loan debt as well as mobile home purchases. The concern here is that wage gains are not on equal pace with this amount of debt. As Bloomberg News and others acknowledge, consumers should be concerned about this.
While auto loans sometimes can be a necessary evil, individuals should think twice before taking out a student loan. With over $1 trillion in student loan debt, job availability is just not there to support the payments required for these student loans once you graduate. Currently, there are more student loans in default than ever before and has become a crisis. Federal student loans tend to be more flexible when it comes to repayment options including income based repayment, private student loans do not. Private student loans do not offer the flexibility for repayment options and many find themselves with wage garnishment because of a lawsuit. What many Americans do not realize is that private student loans can often be settled for less than is owed. This process should be completed by an experienced debt settlement attorney. Whether you have credit card debt, personal loan debt, private student loan debt or medical debt, you should consider debt settlement as an option. This is an alternative to bankruptcy and is a path to a debt free future. Look for an experienced debt settlement attorney in your area.