Jan 16, 2020 02:19 PM EST
Millions of people in the world, especially Americans, do not pay heed to their expenses. Due to the fact they make unwise decisions with their finances, they drive themselves into debt. Whatever the reason, most individuals who spend unwisely or practice no financial planning end up within a debt spiral that can lead them to the verge of bankruptcy. Having a debt collector call at home or work is also hugely embarrassing. So, for whoever finds themselves in this situation, debt consolidation is a great option when in debt with multiple creditors. In fact, the debt consolidation market is expected to see growth. In this article, we explain in detail what debt consolidation is and its state in the market right now. We have also forecast its value for the upcoming year.
What is Debt Consolidation?
In simple words, debt consolidation is a new loan, which is a combination of more than one debt obligation with a favorable payoff term like lower interest rate structure, lower monthly payment, or both. It is taken out to pay off many liability and consumer debts, usually unsecured ones. Consumers use this loan to pay several small debts all at once by taking one big loan. With the help of this loan, they can save on interest and the finance cost of the small loans payable by them. The most significant benefit is that the borrower is able to pay the debt in one go instead of making multiple payments to other creditors. While it may sound like a great solution to sort out your finances, it comes with both drawbacks and benefits.
The Debt Situation in the United States
In the United States, the consumer debt situation is reaching troublesome levels. In the first quarter of 2019, analysts measured a total of $14-trillion in consumer debt. The figure jumped from $13-trillion to $14-trillion in consumer debt at the earlier market peak back in 2008. It is the reason why Americans have started to consider Debt Consolidation USA more than ever to pay off their debts.
Experts also evaluate the per capita rate of debt. The average American once accounted for $41.68 of a total of $13-trillion. Currently, the number stands at $44.77, surpassing the ratio back in 2008. The stats clearly indicate that Americans are drowning in debt, and to see Americans struggling to manage their finances is not surprising at all. In fact, in the next 5-8 years, these numbers are expected to increase significantly.
Debt Consolidation Market to Witness Growth by 2025
In May 2019, HTF MI released a latest research study called Global Debt Consolidation Market Size, Status, and Forecast 2019-2025. In this study, the researchers evaluated the market, emphasized opportunities, risk side analysis, and leveraged with the tactical and strategic support of decision-making. The study gives information on market trends and development, capacities, drivers, technologies, and the fluctuating capital structure of the Global Debt Consolidation Market.
In 2018, the market size of the global debt consolidation was over millions of US dollars, and it is likely to experience massive growth by the end of 2025. This report emphasizes the global debt consolidation status, growth opportunity, future estimate, market, and key players. The study aims to present Debt Consolidation development in the US, Europe, and China. The study also defines the market sizes of various countries and segments in previous years and predict the values for the next 5-8 years.
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