Consumer Debt are debts that are owed as a result of purchasing goods that are consumable and/or do not appreciate.

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<a href="http://www.thecreditexaminer.com/wp-content/uploads/2012/12/consumer-debt-statistics.jpg"><img src="http://www.thecreditexaminer.com/wp-content/uploads/2012/12/consumer-debt-statistics.jpg" alt="US Consumer Debt Statistics and Trends 2012" width="580"></a> <p>Infographic by- <a href="http://www.thecreditexaminer.com/">The Credit Examiner</a>

In total, American consumers owe:

$11.38 trillion, a decrease of 2.95% from last year

• $852 billion in credit card debt
• $8.15 trillion in mortgages
• $914 billion in student loans, an increase of 7.35% from last year
• $72 billion in auto loans

U.S. Household Consumer Debt Profile:

Average credit card debt: $15,328
Average mortgage debt: $149,782
Average student loan debt: $34,703

Top 10 States with The Highest Consumer Debt

25 percent of Americans have more credit card debt than they have in emergency savings.

Only 54% of consumers have more emergency savings than credit card debt

There are approximately 37 million student loan borrowers with outstanding student loans today.

One in five U.S. households currently includes at least one resident carrying student debt

Mortgage debt accounts for 70% of U.S. consumer debt and, at a little bit more than $8 trillion, is at its lowest level since 2006.

9.0% of outstanding debt was in some stage of delinquency

Non-mortgage consumer debt increased by 2.2% as compared to last year

7 steps to reduce your consumer debt -

• Compile a list of your debts
• Make a budget
• Look at your actual spending
• Start living on your budget
• Adjust your budget
• Pay down your debts
• Put any extra money toward your debts

52% of Americans are spending more than they earn, out of which 21% regularly have monthly expenses in excess of their income, only 13.5 percent adjust their spending the following month to get their finances back on track.

For more such interesting facts, check our infographic on Overspending in America

Infographic by The Credit Examiner

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<a href="http://www.thecreditexaminer.com/wp-content/uploads/2012/12/Overspending-america.jpg"><img src="http://www.thecreditexaminer.com/wp-content/uploads/2012/12/Overspending-america.jpg" alt="Overspending in America – Statistics and Facts" width="580" /></a> <p>Infographic by- <a href="http://www.thecreditexaminer.com/">The Credit Examiner</a>

The average American spends $1.33 for every dollar earned

One in four Americans has more debt than savings

Average person’s spending increased about 30% in the last 25 years. That’s on top of the fact that average work hours have risen about 10% in 25 years.

Only 50% of Americans are setting up a monthly budget, out of which 21% fail to meet the budget at least six months out of every year

Only 44% of Americans understand that a credit score measures the risk of not repaying a loan, rather than their debt or financial resources

11 Major reasons of Overspending

• Do not set monthly saving goals
• Easy access to credit
• Easy access to cash
• Credit card misuse
• Giving in to temptation
• Spending to feel good
• Can’t say no
• To prove self worth
• Sense of power
• Lifestyle maintenance
• Keeping up an image

15 Tips to Stop Overspending

1. Keep track of spending
2. Stick to your budget
3. Create shopping list
4. Don’t buy something just because it is on sale.
5. Make price comparison
6. Ask yourself before buying
7. Carry enough cash
8. Eliminate unnecessary spending
9. Strive to live below your means
10. Find cheaper alternatives
11. Appreciate what you have
12. Set your own spending limits
13. Learn how to find great deals
14. Don’t count on your credit cards
15. Get professional help

A lot of people need money. After all, the economy isn’t in the best state and people have a lot of bills to pay. If you have gotten behind on your bills and you don’t have any money to pay them with, you’re probably looking for a quick solution. If you need money right now and can’t wait until you receive income from other sources, a loan is your best option. There are many different kinds of loans available to consumers, so it is important to decide which kind is best for you. The following paragraphs will help you decide whether or not payday loans are a good kind of loan for your situation.

Provide proper employment records

One of the first characteristics of a payday loan is that you need to have a job in order to get one. The lender requires candidates to have a job because it provides them with a form of security. Even though a payday loan is an unsecured loan, asking candidates for employment information helps reduce default rates. In the payday loans industry, there is a high level of default and therefore precaution must be taken.

Consider the repayment period

Another factor to take into consideration is the repayment period. Payday loans generally have short repayment periods. Part of the reasoning behind the short repayment period can be found in the name of the loan: payday. The loan is meant to give you your paycheck in advance, nothing more. Lenders are not letting you borrow long term. Most lenders of payday loans expect repayment within a month, or whenever you get your next paycheck. If you do not pay back your loan on time, the late payment fee will be substantial. As mentioned before, many people default on their payday loan. Because of this, companies assess large fees in order to make up for the customers that default. If you don’t think you can afford paying the lender for your payday loan, it is best not to get one.

If you don’t think that you can pay back your loan on time, you should consider other short term loan options. If you have credit cards, consider a credit card cash advance. One of the benefits of a credit card cash advance is that you can make payments over a longer period of time. The credit card company doesn’t expect you to pay the balance in full, so you can stretch out your payments.

Consider the fees and interest rates

If you are worried about the fees associated with payday loans, you should consider borrowing money from a friend or family member. Even though this option can be less than ideal, your friends and family members will lend you money for a much lower interest rate. This is often because they know you better than commercial lenders or simply because they sympathize with you more. When it comes to borrowing money from a friend, remember that if you don’t repay them on time you could end up damaging the friendship. Many family members get into arguments over money, so it is very important that you both know the exact amount of money that was lent and the exact repayment terms. A good relationship can still exist as long as every part of the loan is clear to both parties.

A third factor to consider when deciding whether or not a payday loan is right for you is the interest rate. The interest rate is very high on a payday loan because it is such a short term loan. The shorter the loan term, the higher the interest rate is. Before deciding whether or not a payday loan is right for you, you need to consider how much you have to pay in order to receive the loan. Is it worth it to get your money a week ahead of time if you owe more at the end? Many times, you will be more in debt if you take a payday loan than if you don’t take one. Even though you can use the money to pay off some of your bills, the fees you owe to the lender will increase your total debt.

Overall, payday loans are a great option if you are looking for a way to get money fast. However, you need to look at your situation closely before rushing out to get a payday loan. The paragraphs above should help you decide whether or not a payday loan is the right option for you. In the end, you need to decide if the benefits of a payday loan outweigh the costs. If you can save money by using a payday loan to pay off other debts, it is something you should do. With all loans, make sure that you take payday loans seriously and intend to pay them back.

If you know that you have a lot of bills to pay in the upcoming months, it is important to think about how you are going to pay them. Many people know that they do not have enough money to pay their bills and they’re looking for potential ways to alleviate their financial hardship. Many people use payday loans to reduce their debt. Before you get a payday loan, it is important to know the benefits and the disadvantages of this financial product. The following paragraphs will discuss reason to get a payday loan and reasons not to get one.

Benefits of payday loans – Getting your money early

There are many benefits of getting a payday loan. One of the main advantages of getting a payday loan is that you are getting your money early. If you have a credit card bill due five days before receive your paycheck, you will end up paying a lot in late fees. If you were to get a payday loan, you would be able to pay your credit card bill on time and avoid late fees. You would also keep your credit history in tact by avoiding a late payment.

Fast approval process

Another advantage of a payday loan is the fast approval process. Unlike other kinds of loans, payday loans usually provide customers with an approval notice during the same day the application was taken. If you need money fast, a payday loan is definitely the loan for you. Most payday loan companies are able to give you a check or wire the money to your bank account within an hour. The same can’t be said about other kind of loans.

No credit history required

If you have a bad credit score, you can still get a payday loan. Payday loan companies do not take a bad credit score into account much. As long as you are able to supply the payday loan company with proof of employment, you should be able to get a loan.

Quick repayment period

While some people might consider a short repayment term a negative aspect of a payday loan, it is actually a benefit. By only having a short amount of time to payback the loan, you will decrease the amount of interest you have to pay. Also, you won’t have to worry about setting aside part of your paycheck for months on end just to pay back the loan. If you are in need of another loan in the future, you’ll be glad that you already have your first loan paid off.

No collateral

Since a payday loan is unsecured, you don’t have to worry about using your car or your house as collateral. Many people do not like taking out loans because they have to put their car title up as collateral. Fortunately, this isn’t the case with payday loans.

Disadvantages of payday loans – interest rates

The biggest disadvantage of a payday loan is the interest rate. The annual percentage rate on a payday loan is usually three to four hundred percent. This is extremely high and impacts the customer’s cost of borrowing. The reason that the APR on payday loans is so high is because it is an unsecured loan. The riskier the loan, the higher the interest rate will be. Many people default on their payday loans, which causes payday loans companies to raise the rates on everybody. Payday loan companies need to spread the loss out and rates will continue to rise as long as people default on the loans. In order to avoid the high interest rates, make sure that you pay back your loan on time. If you pay on time, you will avoid the high interest rates.

Fees

Another disadvantage of a payday loan is the fees. There are many fees associated with a payday loan, so make sure that you read the fine print. Most payday loan companies will charge you anywhere from fifteen to twenty five dollars for every hundred dollars that you borrow. When you are deciding how much money to borrow, make sure that you take this into account. If you have a credit card, you might be able to get a credit card cash advance and avoid paying as much money in fees.

Now that you know the arguments for and against payday loans, you should be able to decide whether or not this financial product is suitable for your needs. For many people, the benefits of a payday loan outweigh the negatives. If you know that you will be able to pay your loan back on time, there aren’t many disadvantages to getting the loan. However, if you aren’t sure that you can pay back your loan on time, you should look for another way to get the money you need. If you don’t pay your loan back on time, you could fall into a debt trap.

There are a lot of people that need cash now. Unfortunately, many people only get paid once or twice a month. If you have a lot of bills that need to be paid, you might be looking for ways to get your money today. There are a lot of options available to consumers who need access to cash instantly. One of the most popular options is a payday loan. A payday loan is a great way to get the money you need instantly. A payday loan is just what you think it might be: an advance on your paycheck. Payday loans are usually not more than one thousand dollars in amount. On one hand, it is good that payday loans are relatively small in amount so that people don’t get in over their heads in debt trying to repay them. On the other hand, people might need access to larger amounts of money. The following paragraphs will provide you with ten alternatives to payday loans.

Alternative #1 – Credit card cash advance

The first alternative to a payday loan is a credit card cash advance. A credit card cash advance is usually processed at a financial institution. Each credit card has a specific cash advance limit. You can process a cash advance for any amount as long as it doesn’t go over the limit determined by the credit card company. While there are fees associated with credit card cash advances, you will be able to repay them over a longer period of time than you would with a payday loan. A credit card cash advance is added on to your total credit card bill for the month. As long as you pay the minimum on your credit card, you won’t have to worry about debt collectors knocking on your door like you would if you didn’t pay back your payday loan.

Alternative #2 – Checking account advance

If you do not have a credit card, you might be eligible for a checking account advance. Most financial institutions provide account holders with the option of an account advance. Checking account advances are like payday loans in that the loan amount is relatively small. However, checking account advances often charge less in fees than payday loans because there is less risk involved for the lender. Since the bank is providing you a loan through your checking account, they already have all of your contact information. If you do not repay the fees associated with the checking account advance, they have a better chance of pursuing you for the amount owed.

Alternative #3 – Payday advance from employer

A third alternative to a payday loan is payday advance from your place of employment. If you let your employer know about your situation, they might be inclined to give you your paycheck early. In order to get your paycheck ahead of time, you might have to agree to a fee or a reduced amount. However, you probably won’t have to pay any interest on the loan.

Alternative #4 – Reserve line

A fourth alternative to a payday loan is getting a reserve line from a financial institution. A reserve line is a line of credit that you can use if you need money. It is usually easy to get a reserve line and can get you the money you need in a short amount of time. A reserve line can even be attached to your checking account so the money automatically transfers into your account. Rates and payment options vary by location.

Alternative #5 – Personal loan

The fifth alternative is a personal loan from a financial institution. A personal loan differs from a reserve line in the amount of money given out. Reserve lines usually do not exceed five thousand dollars. A personal loan can provide you with more money.

Alternative #6 – New credit card

If you have already reached your limit on your credit cards, you can apply for a new credit card as an alternative to a payday loan. You will most likely get sixty days to pay your new credit card bill once you have received your card. This is a great way to pay bills without having to pay any interest.

Alternative #7 – Selling old household items

A seventh alternative to a payday loan is selling products that you don’t use anymore. There are many websites that specialize in ecommerce transactions. If you need money quickly and don’t want to worry about paying interest, this is a great option.

Alternative #8 – Overtime

If your employer allows you to work overtime, this is a wonderful alternative to a payday loan. You will get paid time and a half, which can really help you maximize the amount of your paycheck.

Alternative #9 – Extend debt repayment periods

If you are using your payday loan to pay bills, you might be able to talk to your creditors and see if they will extend the due date. This won’t always work, but it is worth a try.

Alternative #10 – Ask a friend or family member

The last alternative to a payday loan is asking a friend or family member for the money. A friend or family member will usually charge little to no interest on the money borrowed, which is always a good thing.