A multi-headed debt monster has been unleashed, I'm sorry to say this beast has arisen with a ravenous appetite.  The use of debt is and will always be an important instrument for consumers to understand and use properly, however, in recent years this country has experienced an explosion in the amount of debt per household.  When this beast presents itself recession usually looms on the horizon.

     Pundits have shifted their opinions to saying it is no longer a matter of if a recession is likely to statements of certainty.  A typical slowdown is the result of a decline in consumer spending and business investment.  Generally the response to this type of economic condition is to cut taxes and/or increase government spending.  Consumers caught in a debt crisis in this situation face far less battering rams than consumers facing the debt crisis of today.  Unfortunately, the slowdown the pundits are predicting is a result of inflated asset prices and the enormous amount of burgeoning debt.  Due to the structure of this recession the concensus is that duration is difficult to forecast however, all agree that the situation will persist for an extended period of time past normal expectations.  

     The difficulty of perdicting how long the recession will last has to do with the onslaught of economic components involved with this downturn.  For example, the diverse impact of rising energy prices, declining real estate values, and the levels of debt currently held by consumers to name only a few of the major components.

     Few can successfully argue that the lowest interest rates for a period of nearly three years, a record, did not play a significant role in creating the debt crisis of today.  As a result, the ability to resist the temptation to consume was overwhelming.  Household debt ballooned by 75% over a seven year period ending in 2008 from $8 trillion to just shy of $14 trillion.

     One could say that debt, perhaps the most gluttonous of all the heads, is the one component the consumer has the most ability to control.  Over the coming days all the heads of this beast will be discussed in terms of how consumers are being bombarded.  The yardstick used to evaluate your financial health is your credit score.  Essentially, your credit score is a reflection of your ability to manage debt.

     If you are having trouble getting a grip on your debt situation and frankly who isn't, go to www.StopDebtUSA.com to get back the life you are entitled to.