Consumer Debt
Personal Bookkeeping Services

High Debts Illustrate The Need For Help

This consumer debt personal bookkeeping services article shares how rising consumer debts show that the need for personal bookkeeping services is higher than ever. Here are some findings consumers should be aware of.

Recent data from the United States Bureau of Labor Statistics paints an encouraging outlook for the United States economy. U.S. GDP reportedly grew 5% in the last quarter, which is the highest in many years. Job creation has been the strongest since the early 1990s. However, despite the nearly unprecedentedly positive data, American consumers are struggling with wage stagnation and growing debts.

Many citizens clearly need to use personal bookkeeping services to protect themselves. The demand for these services in Petaluma and other parts of Sonoma County is increasingly along with the need for professional bookkeepers.

Consumer Debt Personal Bookkeeping Services

The benefits consumers were hoping to realize from the economic recovery still have not transpired, so consumers will need to take new measures to manage their personal finances. A recent study from the National Foundation for Credit Counselling and Experian shows that most Americans still have significant trouble managing a budget and keeping their debt in check, which proves that they need to utilize personal bookkeeping services. Here are some important findings highlighted in the study:

  • 61% of American adults do not have a household budget
  • One in three U.S. adults do not save any money for retirement
  • One in three adults struggle to pay off their credit card debt each month
  • 15% of Americans have over $2,500 in credit card debt every month

There are several reasons that Americans struggle to keep themselves afloat. The problem is often blamed on wage stagnation, because consumer incomes have barely budged over the last few years. The Department of Labor reports that consumer incomes only increased 1.7% through November of last year, which is anemic after adjusting for inflation.

However, the problem also arises from the fact that consumers are taking on too much debt. These consumers should use personal bookkeeping services to monitor their debt levels to avoid future bankruptcies.

Unprecedented Debt Levels Peak Concerns

The stability of the economic recovery relies largely on consumer spending. Unfortunately, higher consumer spending won’t be beneficial if it isn’t sustainable. The NFCC study raised some concerns, but a number of other reports show that the problem is more serious than many people recognize.

New data from the Federal Reserve’s Flow of Funds shows that consumer debt is now at a record high. While some rosy eyed experts feel that higher debt is indicative of an economic recovery, most feel that it reflects a new financial bubble. Elevated consumer debt between 1995 and 2008 played a key role in the global financial crisis, which is one of the reasons that so many experts are growing concerned.

Bankrate has been tracking consumer spending and saving for the last few years. The consumer debt personal bookkeeping services financial monitoring company found that 28% of consumers had more credit card debt than savings last February. More recent data indicates that the problem has probably worsened.

Consumers Need to Form Budgets and Manage Debts

Managing debt is one of the most important elements of personal financial management. Unfortunately, many consumers clearly lack the financial competencies needed to handle their own finances. They should consult with a professional bookkeeper to manage their money more effectively.

The biggest reason that consumers face financial problems appears to be lack of a balanced budget. Research has shown that consumers that formulate a sensible budget are far less likely to succumb to credit card debt, underfunded retirement accounts and other financial problems. Even otherwise intelligent consumers often need some direction, so should consider using consumer debt personal bookkeeping services to assist them.

Two Ways a Personal Bookkeeper Can Help

A personal bookkeeper can play a vital role in helping individuals manage and alleviate consumer debt. By providing financial expertise and guidance, a personal bookkeeper can assist in developing effective strategies to tackle debt and regain control over one's financial situation. Here are two ways a personal bookkeeper can help with consumer debt:

  1. Budgeting and Financial Planning: One of the primary responsibilities of a personal bookkeeper is to create and maintain a comprehensive budget tailored to an individual's financial circumstances. When dealing with consumer debt, establishing a well-structured budget is crucial. A personal bookkeeper can analyze income, expenses, and debt obligations to determine the most effective allocation of funds. They can help identify areas where spending can be reduced or eliminated, and allocate the saved funds towards paying down debt. By setting realistic financial goals and closely monitoring income and expenses, a personal bookkeeper can help individuals prioritize debt repayment and make informed decisions about their finances.

Furthermore, a personal bookkeeper can assist in developing a debt repayment plan. They can evaluate different debt payoff strategies, such as the snowball or avalanche method, and determine the most suitable approach based on individual circumstances. By calculating debt-to-income ratios, interest rates, and minimum payment requirements, a bookkeeper can provide a clear picture of the debt situation and create a realistic timeline for debt repayment. With their expertise, a personal bookkeeper can help individuals develop a structured plan to pay off debts efficiently and track progress along the way.

  1. Monitoring and Negotiating with Creditors: Managing consumer debt often involves dealing with multiple creditors and financial institutions. A personal bookkeeper can act as an intermediary, assisting individuals in monitoring their debt accounts and communicating with creditors. They can help review credit card statements, loan agreements, and other financial documents to ensure accuracy and identify any discrepancies or potential issues.

In some cases, a personal bookkeeper may also negotiate with creditors on behalf of the individual. They can leverage their financial knowledge and communication skills to seek favorable terms, such as reduced interest rates, extended payment plans, or debt settlements. By engaging in effective communication and negotiation, a bookkeeper can potentially help individuals secure more manageable repayment options and reduce the overall burden of consumer debt.

Additionally, a personal bookkeeper can provide guidance on debt consolidation options. They can evaluate the feasibility of consolidating multiple debts into a single loan or credit facility, simplifying the repayment process and potentially reducing interest rates. By analyzing the individual's financial situation, a bookkeeper can determine if debt consolidation is a viable solution and assist in finding reputable lenders or financial institutions.

In conclusion, a personal bookkeeper can be an invaluable asset when dealing with consumer debt. Through budgeting, financial planning, monitoring debt accounts, and negotiating with creditors, they can provide individuals with the tools and guidance needed to regain control over their financial well-being. By working closely with a personal bookkeeper, individuals can develop effective strategies to manage and ultimately eliminate consumer debt, leading to improved financial stability and peace of mind.

Horne Financial Can Help Manage Your Personal Finances

It is easy to blame corporate greed or wage stagnation for personal financial problems. However, while American consumers have faced some challenges in recent years, they have the ability to address many of their own financial problems. If you need assistance managing your personal finances, then please consider using our personal bookkeeping services in Rohnert Park. We look forward to helping you get on the right track!    

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