President George W. Bush got sued the other day (March 22, 2006, to be precise).  He’s not too worried about it.  A group called Public Citizen now has two lawsuits against the President for passing the Deficit Reduction Act of 2005.  Apparently, there were a couple of typos on the bill Bush signed into law, so technically; he passed a different Act than the one approved of by Congress.

This debt reduction lawsuit seems, at first glance, to be about a group of people who really need part time jobs.  But the national debt reduction lawsuits are trying to point out some flaws in the Deficit Reduction Act, which only squeaked by Congress. 

The Deficit Reduction Act & You

The national debt or deficit is what the American government owes to the banks and governments of other countries.  These banks are no fools – they charge interest rates that would make your credit card company jealous.  The current National Debt, according to the web site “U.S. National Debt Clock”, is — wait for it —

   $8,832,546,056.49

Well, give or take a few million.  Anyway, the Deficit Reduction Act seeks to cut this figure – by raising interest rates on student loans and raising the cost of Medicaid, among other places.  The debt reduction lawsuits have come to nothing, and the Act is law.  If you are on Medicaid or have a kid in college, you’ve been feeling the pain.

If America Can Get Away With The Debt, Why Can’t I?

The whole reason I’ve pointed out this rather bizarre episode in American legal history is that it mirrors the persona debt problems of the average American.  They see the government getting away with trillions of dollars in debt and wonder why they’re getting hassled over the payments on a recliner.  Unfortunately, a recliner can be repossessed.  The entire country of America cannot.  Many never think about personal debt reduction.  Lawsuits can be threatened, but lawsuits rarely ever come to court. 

Debt reduction, lawsuit-inspired or not, is a personal issue that should be a priority with individual Americans.  Not being in debt is a very self-empowering experience.  Don’t look to the government to ever get out of debt, for the government has no priority to get out of debt.  But you have a priority to make yourself the best person you can be.  Dealing with debt reduction, lawsuits, or any other financial matter can help you take control of your life.  If you learn to reduce your personal debt and manage your money, you can learn how to change other habits in your life. 
Then, you could teach the government a thing or two.

If you are in debt, you’re not alone.  But with a consolidation loan, debt reduction is possible so bill collectors can leave you alone.  There are many financial services that can offer you a consolidation loan, debt reduction counseling and other services to teach you to manage your money.  These services vary from company to company, so be sure to shop around for the best value.

What Is It?

A consolidation loan is a special loan that usually only home owners can get.  The debt reduction service pays off your debts.  You then pay the debt reduction service monthly or bimonthly payments of the loan.  Why would they give you a consolidation loan? Debt reduction services are banks, even if they claim to be non-profit, so they are not going to give you’re a consolidation loan out of the goodness of their hearts.  You have to put your house or property up as collateral.  If you miss paying your consolidation loan repayments, you do stand to loose your home.

The benefit of a consolidation loan is that you’re not paying the high interest rates of student loans or credit cards.  You also don’t have to pay a variety of companies every month – you just pay the debt reduction service. 

You will not have all of your debt problems removed from a consolidation loan.  Debt reduction must become a priority in not only your life, but the lives of everyone you are living with.  You have to know where all the money is going and curb unnecessary expenses.  If you don’t make any effort to live within your means, you will go right back into debt.

How To Tell A Shady Debt Reduction Company

There always has to be a rotten apple in any business field, and debt reduction is one that has some scam artists.  Forget about getting a consolidation loan, debt reduction loan or anything else if the prospective company:

asks for donations for it’s own company “because we are non profit”
asks you to lie or exaggerate anything, especially anything in writing
asks you to pay for an initial consultation or even for information about their company
offers you a loan and interest rates without first reviewing your current financial records
makes no effort to help you learn how to manage your money yourself

One place that can help you look for a reputable debt reduction service is from whoever you owe the most money to.  Your bank, broker or credit card service may have a list of debt reduction services that they have had good, safe business with in the past.

If you want to get your finances in order, it may be a wise to decision to work with a debt consolidation service company regarding your debt consolidation and reduction. It is a decision that should be treated with pride, rather than with shame, though you will need to choose the best debt consolidation service company. There are many different debt consolidation services companies available that will help you out of your difficult financial situation.