Comparing debt deficit of UK and US to find why debt consolidation loans have become inevitable

Published Tuesday February 14 2012

It is undeniable that debts can hurt you more than anything else. An individual may get pressurized by debts at an unimaginable scale. Tormenting debts may even force him to commit suicide. In fact, if we take into account the recent statistics, we find that there have been instances where many people committed suicides in the wake of burgeoning debts. Therefore, it is better to avoid debts to the possible extent. Even if one gets entangled in the spiral of debts, there is no need to fear as there are debt consolidation loans in the offing. However, let us look at the current UK and US debt situation.

UK Debt Situation

If we take into account the debt situation of UK by pondering over the last two years data, we find that the UK government recorded a general government deficit of £101.3 billion. The figures are equivalent to 7.1 per cent of gross domestic product (GDP). However, if we analyze the situation by taking into account the March end figures, the UK government debt stood at £796.9 billion in total. The figure is equivalent to 55.5 per cent of gross domestic product (GDP).

US Debt Situation

If we take into account the present debt situation of US, we find that the Americans have always been one step ahead in this regard as well compared to the UK. The total debt, as far as an average American is concerned, comes to around $5,800 in credit card debt from month to month. It is interesting to note that over 40% of American families spend more than they earn on monthly basis according to the Federal Reserve. What's more, 96% of all Americans are bound to retire putting their financial burdens on the American government. The total US deficit stands at $1.42 trillion in August 2009.

Debt Consolidation

Considering the above mentioned statistics, debt consolidation has become need of the hour. The power of debts cannot be undermined as they can force the mighty governments to change their strategies and decisions. Considering this point, it is always better to avoid debts to the possible extent.

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