Describing the commercial loans arrears data, disclosed by the Central Bank of the Bahamas March economic report, as concerning, Winston Rolle, the Bahamas Chamber of Commerce and Employers Confederations (BCCEC) chief executive, said it was vital that the numbers start going in the opposite direction.

He also noted the Central Banks disclosure that debt consolidation loans – usually the Last Chance Saloon for hard-pressed borrowers – showed the first year-over-year decline for 19 months (one-and-a-half years) in February 2012.

The previous year-over-year reduction, according to the Central Bank, was in May 2010, and Mr Rolle said this was evidence of just how over-extended many Bahamian households and consumers were, finding themselves heavily over-leveraged when the global recession hit.

And, while Bahamian banks saw a slightly improved 2012 first quarter, sustained loan write-offs and debt restructuring helping to reduce their total loan arrears by $15.7 million or 1.3 per cent to $1.192 billion- a figure equivalent to 19 per cent or almost $1 out of every $5 lent – commercial loans to local businesses were going in the opposite direction.

Commercial loan delinquencies advanced by $15.5 million (5.4 per cent) to $302.2 million, owing to the $15.7 million (17.9 per cent) gain in the short-term category, which outpaced the modest $0.2 million (0.1 per cent) decrease in the non-performing segment, the Central Bank said of the 2012 first quarter.

Given that there were some $962.6 million in commercial loans outstanding at end-March 2012, this means that 31.4 per cent of credit advanced to the Bahamian private sector is either in default or non-performing.

March itself was not encouraging, with commercial loans again being the main driver of the months increase in total private sector loan arrears. The growth in arrears was occasioned by a $24 million (8.6 per cent) gain in commercial delinquencies to $302.2 million, led by a $24.6 million (31.3 per cent) increase in the 31-90 days category, which outpaced the $0.6 million (0.3 per cent) decline in non-accrual loans.

The timing of the March increase in bad commercial loans to Bahamian companies, coming as it does soon after the Christmas season and being concentrated in the 31-90 day segment, indicate that an increased number of businesses are struggling to meet their obligations, having failed to receive the anticipated holiday season bounce.

It means that businesses are not really recovering, Mr Rolle told Tribune Business, when asked for his interpretation of the data. Thats concerning. That means the business sector is not recovering as they had hoped they would, and wed like to see those numbers go in the opposite direction.

The BCCEC chief executive added that the timing of Marchs commercial/business loans arrears spike probably points directly to Bahamian companies failing to enjoy the hoped-for Christmas season.

It also makes you wonder what the outlook is like as we move forward, as basically were in the summer months pretty soon, which tends to be the low point of the business cycle in any event, Mr Rolle said.

With economic recovery not happening as it should, he added: It just goes to show a lot of work needs to be done from the private sector and government standpoint, as both have a role to play in relation to recovery.

Credit demand, meanwhile, remains anemic – again, not a great sign when it comes to economic upswings. For March 2012, the Central Bank noted: The contraction in credit to the private sector eased to $3.2 million from $10.5 million a year earlier, as the decline in consumer credit slowed by $12.1 million to a mere $2.5 million.

In contrast, commercial and other loans decreased by $1.9 million, a turnaround from a marginal $0.6 million advance in 2011, while mortgage growth slackened to $1.1 million from $3.5 million.

This mirrored the 2012 first quarter performance, the Central Bank noting: The private sectors liabilities fell further by $12.9 million, relative to the prior years $3.7 million. Underlying this development, commercial credit decreased by $3.7 million, a turnaround from a $15 million advance in 2011; and mortgage growth slowed by over 50 per cent to $6 million. However, the contraction in consumer credit was more than one-half to $15.2 million.

Mr Rolle attributed the private sector declines to weak credit demand and the more prudent lending habits of Bahamian commercial banks, who were only taking on projects that had greater success opportunities.

As for consumers, the Central Bank report said: A breakdown of consumer lending for the month of February – the latest available data – showed broad-based contractions among the various components.

The most significant decrease was noted for credit card debt, which declined by $4.4 million, followed by debt consolidation loans, by $2.1 million – the first reduction since May 2010.

That was two years worth of increasing consolidation, Mr Rolle said. That just goes to show that, in many instances, were spending well above our means from a consumer standpoint.

And, with the Bahamas still challenged to attract the foreign direct investment (FDI) levels it is used to, the BCCEC chief executive added: We still have our work cut out for us. Going into the summer months, when things tend to slow down, is not a comfortable position for us.

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Consumers who are wearying of constantly getting “another day older and deeper in debt,” as Tennessee Ernie Ford once sang, can find themselves tempted to try desperate measures to get out of that cycle. Some of those measures can actually worsen a financial burden.

An abundance of credit repair, debt settlement, debt consolidation and even debt elimination companies are vying for your business these days. Your Better Business Bureau encourages consumers to educate themselves about the many companies who claim their services can be just the ticket to relieving debt issues.

Watch out for credit repair companies

The Federal Trade Commission warns that there is no magic wand. No one can remove accurate negative information from your credit report except Father Time. Consumer reporting companies can keep accurate negative information on your credit report for 7 years, and bankruptcy information on it for 10 years.

That fact does not stop credit repair companies from making extravagant claims about raising your credit score. The truth is that for the cost of a few stamps the consumer can do the same thing that a credit repair company will charge for. Look for these red flags when considering a credit repair company:

o The company wants money up front for their services. Under the Credit Repair Organizations Act of 1996, you cannot be required to pay until the promised services have been completed.

o The company does not tell you your rights and what you can for yourself for free. You already have the right, for instance, to request an investigation of information in your file if you think it’s inaccurate.

o The company tells you they can get rid of negative information in your file even if it is accurate and current.

o The company advises you to apply for an Employer Identification Number to use instead of your Social Security number to invent a “new” identity. This is extremely dangerous and you could thereby be guilty of a federal crime.

Remember that you have 3 days to change your mind without incurring any charges after signing a contract with a credit repair company.

Better Business Bureau complaints nationally regarding credit repair companies rose from 133 in 2006 to 711 in 2011. Don’t become part of this trend by paying scammers to do what you can do yourself.

Other debt relief temptations

Debt consolidation companies offer to roll up assorted debts allowing you to make one lower payment to the company itself. Tacked on fees and exorbitant interest rates can mean the consumer pays much more money out in the long run. In cases where most of the money owed is to credit card debt, simply getting a debt consolidation loan from a credit union or bank at a lower interest rate could be advisable.

Debt negotiation/settlement companies say they will get your lenders to lower the total amount of debt owed for an upfront fee. Always beware of upfront fees. Some consumers find out later that the company never made the promised contact with the lender. Meanwhile, the payments that should have been made to the lender but were not have worsened the consumer’s situation. In addition, the debt negotiation company has taken your money and run.

Debt elimination companies have a million schemes but they all rely on the notion that credit lines are illegal. For an upfront fee, of course, they provide the consumer with a “document” that supposedly absolves their debt. It does not and your debt problem can thereby be worsened.

Better suggestions

Stay in contact with lenders and try to work out a payment plan with them. Contact a non-profit credit counseling agency, many of which are free or charge a very small fee. Check out any debt management company with the BBB for free. Remember our oft-repeated adage: if it sounds too good to be true, it is.

If you find yourself singing along with Tennessee Ernie on the line, “I owe my soul to the company store,” remember that free advice on debt issues is available from the Better Business Bureau at www.bbb.org.

For more information contact the Better Business Bureau of Kansas at 800-856-2417 or www.kansasplains.bbb.org.

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West Fargo, ND (PRWEB) April 30, 2012

Those who are struggling with debt are constantly looking for ways to apply additional money each month towards their debt so that they can reach their goal of paying off the debt as soon as possible. Family Life Credit Services understands how important it easy to find ways to cut down debt so they will be hosting a free twenty-eight minute webinar on Monday, May 21st at either 1 pm or 7 pm Central Standard Time. Both offerings will discuss the same information, so simply pick the one that works best. The May webinar will introduce 5 simple ways to pay down debt faster. The host will share practical ideas that can immediately be implemented. This webinar will provide some very helpful insight into ways to save some additional money each month.

To register for the webinar and to take advantage of all the valuable information it will provide visit: http://www.familylifecredit.org/free-webinar-5-simple-ways-pay-debt-faster-1pm-cst/ for the 1 pm webinar or http://www.familylifecredit.org/free-webinar-5-simple-ways-pay-debt-faster-7pm-cst/ for the 7 pm webinar. Once there click on the “Register here for the webinar” link. Registering is easy as all that has to be done is to enter the basic information and then click register.

Family Life Credit Services is nationwide nonprofit Christian Family Counseling agency founded in 1986. They were incorporated as Family Life Services Inc., DBA. Family Life Credit Services in 1989 and are currently located in West Fargo, North Dakota.

Family Life Credit Services is an organization of Christian credit counselors who provide confidential biblical Christian debt counseling help for individuals and families who have found themselves in financial crisis. Family Life Credit Services helps these people by analyzing their budget, discussing all the options they have including self payment, debt consolidation program, bankruptcy, personal loans, etc. They do all of this without making any personal judgments about clients the circumstances leading up to their situation. Family Life is not a loan company, nor do they file bankruptcy claims.

All of the counselors at Family Life Credit Services are certified through an independent agency and are required to complete 20 continuing education hours every two years. All of their counselors are highly compassionate and understand that during life’s journey, people often travel through some rough patches. They understand that although some of these rough patches are self-inflicted, other circumstances are completely out of anyones control. Many of Family Life’s credit counselors have been there shoes before and they know what it’s like to have creditors calling. Through their own experiences and their education, one can be sure that they will listen and do what they can to offer assistance, relief, and direction.

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Horizon Bank offers individuals the opportunity to consolidate their debt, simplify their monthly bill paying, and, in most cases, deduct the interest from their income tax returns.

According to Mike Foti, a Consumer Loan Officer, “Individuals who are ‘drowning’ in debt often have trouble making their monthly payments. In the case where they are only paying the minimum due each month, the total interest and the time necessary to pay off the debt seem like an uphill battle. What normally would take two years to pay off can more than double in time while the interest associated with the unpaid debt continues to escalate.”

Our staff may suggest a number of loan options to help our customers alleviate their debt problems. One option is a Home Equity Loan, also referred to as an “equity loan” or “second mortgage.” A Home Equity Loan – based on the difference between the homeowner’s equity and the home’s current market value – is a fixed loan amount available to help pay off your bills completely or, at least, pay off as much as possible. Most Home Equity Loans feature a fixed interest rate, which is typically substantially less than what you are currently paying on your credit card or auto loan.

Another option is a Home Equity Line of Credit – a form of revolving credit in which your home serves as collateral. Although the line of credit may be used for debt consolidation purposes, this product is best suited for long-term flexibility of borrowing and repayment.

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NEW YORK, April 27, 2012 — /PRNewswire/ — Nationalrelief.com wants to make it easy for anyone to get the debt help they need. Filling out a simple form can get consumers connected to programs customized for their needs. The application is quick, easy and secure. Best of all, it is easy and comes with no obligation.

Consumers who are dealing with credit card debt should consider debt settlement over bankruptcy or a debt consolidation loan. Settling those credit card debts can save the average consumer 50 percent off their principal balances.

Failure to pay credit card bills on time can result in constant contact from creditors. Constant phone calls, letters and harassing messages are often reported by debtors. Consolidating debt through settlement or arbitration can end the creditor harassment. Debtors who use a debt relief service to settle their debts will no longer be contacted by creditors.

Instead, the creditors will be contacting the debt relief service directly. This can lift a heavy burden off those who are struggling with debt. Legal actions may also be halted once a debtor enters a credit relief program. The focus should be on repaying as much of the debt as possible as opposed to litigation.

Those who opt for a debt settlement program are not taking out a loan. Debt settlement is simply another way to consolidate multiple credit card payments into one monthly payment. Keeping track of one monthly payment is often much easier for most debtors. Organization typically leads to fewer missed payments.

Consolidating credit card payments will result in a faster debt payoff than other debt reduction methods at the lowest cost. Nearly all credit card companies raise interest rates to 30 percent after just one missed payment. Settling credit card debt can reduce that interest rate by 50 percent. Some consumers may see a savings of 60 percent on their interest charges.

Costs related to credit card relief programs should always be considered. Nationalrelief.com will only collect fees once an account has been satisfactorily settled. Companies who charge fees before services dont offer consumers the best value. Dont be fooled by another company who claims to be a non-profit in the hopes of luring in people who are down on their luck.

Contact:

National Debt Relief Group 1-888-703-4948 http://www.nationalrelief.com

This press release was issued through eReleases(R).#xA0; For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE National Debt Relief Group

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Phoenix, AZ (PRWEB) April 30, 2012

Lerner and Rowe Injury Attorneys, PC, recently opened a criminal defense and bankruptcy practice to complement their personal injury law firm. Lerner and Rowe Law Group is located at 2701 East Camelback Road, Suite #180, Phoenix, AZ 85255. The law group has a client service line that is available 24-hours a day, seven days a week by calling (602) 667-7777.

“Lerner and Rowe Injury Attorneys was founded upon the principles of quality representation and a dedication to client service and satisfaction,” stated Co-Founder Glen Lerner. “We plan to carry those same principles over to our new law group and are excited to diversify the in-house services available to our clients.”

The new criminal division includes Managing Attorney Alan R. Hock, a State Bar of Arizona designated Criminal Law Specialist. Mr. Hock has more than 15 years of legal experience to include approximately 200 jury trials. The new criminal law division handles bench warrants, DUI’s, drug charges, inmate rape and abuse, juvenile crimes and murder cases.

Bankruptcy cases the law group now handles include Chapter 7, Chapter 11, Chapter 13 and debt consolidation. Attorney Robert Beucler leads this division and is a Board Certified Specialist in Bankruptcy Law with 20 years of experience representing clients with their Arizona bankruptcies.

The Lerner and Rowe Law Group opened spring 2012 to diversify the services that the Lerner and Rowe Injury Attorneys, PC, offers their clients. Lerner and Rowe law offices represent people in the great metropolitan Phoenix area and throughout Arizona, including those in Bullhead City, Mesa, Scottsdale and Arrowhead / Glendale. Their partner offices outside of Arizona are also able to help victims with personal injury, criminal defense, bankruptcy and class action medical and product liability cases in Nevada, Minnesota, Illinois and Florida. For additional information, visit lernerandrowelawgroup.com or call (602) 667-7777.

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BRUSSELS (Reuters) – Slowly but surely, the European Union is shifting its message on promoting economic growth and is coming to the realization that it may have been looking for it in the wrong place.

The question is whether the bloc can come up with a strategy that convinces skeptical financial markets while keeping debt on a downward path.

For many months, the mantra has been that struggling euro zone countries must reduce budget deficits and carry out deep structural reforms – to labor markets, pension systems and via privatizations – to boost competition and stimulate growth.

The problem is that cutting spending and overhauling economies when they are already contracting tends to create a downward spiral, with the slowdown deepening and deficits becoming ever harder to reduce as a proportion of output.

What is more, the structural reforms EU policymakers are demanding – and which the likes of Italy, Spain, Greece and Portugal are battling to implement – can take years to deliver a growth benefit, while in the short-run they tend to lead to social and political upheaval.

What the EU needs instead, economists and many policymakers agree, are measures that can stimulate growth more immediately in a region responsible for a fifth of global output.

As one EU official responsible for advising leaders on how to combat the crisis succinctly put it: Enough of the debt fetishism, its time for a proper stimulus.

Nobel-prize winning economist Joseph Stiglitz added his voice to the debate last week, calling Europes debt consolidation strategy suicidal and pointing out that a pure austerity program had never restored health.

During a debate in Vienna, he urged wealthier EU countries such as Germany to boost investment in infrastructure, education and technology, which could deliver returns much greater than the cost of capital.

I hope … the debate will be what are the things we can do to promote growth rather than how do we strangle each other together, he said.

A focus on investment is attractive. While Italy was left unscathed after deferring its balanced budget goal by a year, the punishment meted out to Spain by the bond market, driving its borrowing costs higher since it raised its 2012 deficit target, shows significant loosening of fiscal policy is fraught with danger.

Even if governments were seriously contemplating significantly relaxing fiscal policy, such a change of tack would be counter-productive, said Deutsche Bank analysts Mark Wall and Gilles Moec.

NECESSARY BUT INSUFFICIENT

In recent days the bare bones of a strategy for stimulating growth have started to come together, with the intention of launching it at an EU leaders summit in late June.

The main focus is on increasing the capital of the European Investment Bank, the EUs long-term lending arm, to allow it to make bigger investments in infrastructure projects and related areas across the EUs 27 member countries.

The EIB financed EU projects worth around 70 billion euros in 2010, with the lending made on the basis of relatively small paid-in capital. By boosting the paid-in capital by only 10 billion euros ($13.2 billion), the banks lending could be greatly leveraged, delivering extra investment of up to 180 billion euros.

Olli Rehn, the European commissioner for economic and monetary affairs, set out a proposal along those lines to EU member states earlier this month and the idea will be discussed by ministers in mid-May. Officials say the EIB, which has resisted the move in the past, is now prepared to go along.

I made a call on EU member states to increase the capital of the EIB, which would be the most convincing way of providing funding for necessary investment in infrastructure and innovation in Europe, Rehn told Reuters in a recent interview.

We dont have the luxury of time until the crisis is over. We need additional capital for the EIB for investment now, he said.

Such an initiative could help revive growth at the margins but it does not look like a game changer.

Put it against the more than 1 trillion euros created by the European Central Bank – which may have averted a credit crunch but has done little to revive a euro zone economy poised to slide back into recession – and the numbers look small.

Complementing austerity with some federally-funded investment schemes is becoming consensual, but we dont expect any quick sizeable effect on growth, the Deutsche Bank analysts said.

At the same time, the European Commission, the EUs executive, is exploring ways of redirecting EU structural funds, which are paid to poorer member states to help them improve their infrastructure, to deliver a quicker growth lift.

The EUs long-term budget set aside nearly 350 billion euros for structural and cohesion funds between 2007-2013, but only a fraction of that – a few billion – is likely to be redirected under the Commissions plan, which is still taking shape.

The Commission on Monday sought to play down what it called highly speculative figures about how much could be set aside for infrastructure investment, and said it remained focused on deficit reduction at the same time.

We are not talking about an alternative to fiscal consolidation, Commission spokeswoman Pia Ahrenkilde-Hansen told reporters. The issue is not either fiscal consolidation or growth, we need both.

Politically, there is no prospect of giving euro zone members much leeway on debt just as new fiscal rules to ensure deficits are kept to a common minimum are being established.

The fiscal pact is likely to remain broadly intact but, the path of deficit reduction is likely to be eased a little, said David Mackie, economist at JPMorgan in London.

He too predicted an expanded role for the European Investment Bank and more aggressive use of EU structural funds.

POLITICS IN PLAY

While it remains to be seen what EU leaders can come up with – and there is little at this stage to buoy financial markets to – there is certainly pressure to shift the rhetoric towards a more pro-growth agenda.

In the past week, governments in the Netherlands and Romania added to the long list of administrations that have been toppled while pursuing austerity drives.

With Francois Hollande, the growth-focused Socialist challenger, expected to win the run-off against Nicolas Sarkozy in the French presidential election on May 6, the moment is ripe for leaders to shift tack.

European Central Bank President Mario Draghi has talked about a growth compact and at the weekend, German Chancellor Angela Merkel backed a boost in EIB capital, although she also reiterated the need for fiscal consolidation and structural reforms.

Herman Van Rompuy, the president of the European Council and chairman of EU summits, wrote to EU leaders last week urging them to find common ground on a range of issues that could offer an economic stimulus, including energy efficiency and a single European patent, an agreement blocked for nearly 30 years.

The emphasis should now shift increasingly to prioritizing measures that can boost growth and jobs and a return to sustainable growth, he wrote, adding that it may be necessary to hold an informal summit in the coming weeks to maintain momentum between now and the next planned summit on June 28-29.

Officials indicate that extra gathering is likely to be held at the very end of May or the first day of June, leaving leaders four weeks to flesh out their growth-boosting ideas.

(Writing by Luke Baker, editing by Mike Peacock)

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The incident happened a few years ago in a call center in Mumbai. The company had about 200 employees at that time, and was working on USA debt consolidation process which was handling more than 300-400 confidential credentials of US customers on a daily basis.

The business was doing well until the company received a notice from a US court. A huge amount of money had disappeared from a bunch of bank accounts that belonged to a US company. The suspicion fell on the Indian call-center which was later successfully sued by the affected US customer. Having paid several crores in fine, the call centers management started an internal investigation.

It turned out that seven months before the incident, one of the employees had infected the whole IT infrastructure, right from workstations to servers, with a keylogger Trojan that collected keystrokes from all systems. It seems that the hacker had spread the worm simply over the LAN as companys IT infrastructure had very poor malware protection, to put it mildly.

The malware was designed to collect information that call-center agents were receiving from US clients while on call. It spy monitored and recorded all keystrokes when employees were on a live call with a customer. The target of the hacker were personal credentials like name, addresses, credit card numbers and SNN or social security numbers, which is the most valuable information that any hacker looks for.

Later from our own sources, we came to know that the hacker was selling this data to Russian and Chinese hackers through several black hackers forums. Interestingly, later the same data was also sold to a group of Nigerians engaged in card-cloning business back in Mumbai.

Well, the obvious question that comes from this is–how can a call-center work without security measures, anti-malware software at least, and a dedicated IT team which would discover the breach? Here, the story takes a new turn. The call center had quite a professional IT team. However, the hacker was so smart that he made himself safe from the very beginning. While collecting keystrokes from the employees workstation, he managed to collect some interesting personal data about the Chief IT administrator. He started blackmailing the CTO shortly before the CTO discovered the malware. I must say that the hacker was not only technically strong, but was also very good in social engineering.

After the perpetrator was found, it took about a month to clean the whole system of the malware and get back to operations (thats where we got involved in the story, after the IT team had spent about 2 weeks trying different free anti-virus tools). We helped the company clean up the system, from endpoints to server side, as the main server responsible for ACD and IVR functions was affected, and set up comprehensive protection.

During this whole month, the call-center stayed idle, as the employees were told to sit at home on paid leave. Its not too difficult to imagine the losses the company suffered because of this.

The investments in setting up the total security measures were actually incommensurably lower than the cost of the incident.

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So the downturn was a basically matter of choice, a self-inflicted wound brought on by poor decision-making in Brussels and Frankfurt. Anyone could see what the result was going to be because contractionary policy leads to economic contraction. Implement policies that are designed to shrink the economy, then the economy will shrink.

For the last month or so, the focus has mainly been on Spain, and for good reason. Spains banking system is crumbling beneath the weight of tens of billions in non performing loans generated by the gigantic housing bubble which is still deflating. Unemployment in Spain is the highest in Europe at 24 percent. (Youth unemployment is over 50 percent) Even so, Spains right wing PM Mariano Rajoy is attempting to reach the deficit targets demanded by the troika which will push unemployment higher while further deepening the depression. According to Der Speigel:

The prime minister recently announced that he wants to reduce expenditures in the countrys education and health system by euro;10 billion. hellip;. To meet the demands of the central government, the regions would have to slash 80,000 out of 500,000 teaching positions.

As you can see, austerity measures and debt consolidation are only adding to Spains woes. Eventually, after much unnecessary misery, Spain will require a bailout, although ECB president Mario Draghi insists that this is not so.

But Europes problems are not limited to Spain or countries on the periphery. Frances output has slipped for a second month in a row and the pace of the decline is accelerating. The service sector is also showing signs of distress as belt tightening measures take hold and gradually reduce aggregate demand. Unemployment is edging higher as the slump deepens. According to data from Eurostat the seasonally adjusted jobless rate in France reached 10 percent in April, a 12 year high. Ballooning unemployment has led to an uptick in poverty which now affects 13.5 percent of the population. Austerity measures have led to a decline in personal consumption, an erosion of confidence, and a more generalised slowdown across all sectors. Still, intractable bankers and bureaucrats in Brussels and Frankfurt have not veered one bit from the original policy. They remain steadfast in their commitment to austerity.

Heres Draghi defending austerity in an interview with the Wall Street Journal:

There was no alternative to fiscal consolidation, and we should not deny that this is contractionary in the short term. In the future there will be the so-called confidence channel, which will reactivate growth; but its not something that happens immediately, and thats why structural reforms are so important, because the short-term contraction will be succeeded by long-term sustainable growth only if these reforms are in place. (Qamp;A: ECB President Mario Draghi, Wall Street Journal)

Notice how Draghi does not defend austerity on the basis of any identifiable economic theory, nor does he cite any examples of austeritys successes. (Are there any?) Nor does he name any prominent economists who support the theory. Its all just Trust us, were the expertshellip;. contractionary expansion will work because we say so even though the economy is sinking, unemployment and extreme poverty are at record highs, and the Eurozone is embroiled in the worst slump in the last 80 years. Trust us. We know what were doing.

And heres a sample of Draghis views on taxation from the same interview:

A lsquo;good consolidation is one where taxes are lower and the lower government expenditure is on infrastructures and other investments.hellip;A lsquo;bad consolidation is actually the easier one to gethellip; by raising taxes and cutting capital expenditure.

Lets summarize: Cutting public spending and austerity, Good. Raising taxes, Bad. Isnt this the same right wing blather weve heard for years?

Austerity amounts to an attack on Europes social model and aims to roll back the progressive advances of the last century. Theres nearly-universal agreement that belt tightening doesnt lead to recovery, but just make matters worse. Trimming deficits in the throes of a recession is a surefire way to choke off economic activity and foment social unrest. And so it has. Aside from turning many of the EUs biggest cities into free-fire zones, austerity is reshaping the political landscape and fueling radical elements on the right and left who are calling for an end to the 17-member union and a return to national sovereignty. (Hooray)

Still, policymakers seem oblivious to the political firestorm theyve touched off. They remain focused laserlike on their primary objective, which is to make sure that a bigger share of the national wealth moves up the income chain. The way they do this is by demagoging the fake debt crisis while their political lackeys and technicians slash pensions, health care and subsidies to protected industries; hack away at state budgets, reduce their federal workforce, crush organized labor, remove tariffs and taxes on capital, and privatize more public assets and services. Smaller government means less activity, fewer jobs, weaker demand, and greater hardship for working people. In other words, austerity achieves exactly what it was meant to achieve; bigger profits for the 1% and zilch for everyone else. Heres a clip from an article in Reuters:

The euro zones business slump deepened at a far faster pace than expected in April, suggesting the economy will stay in recession at least until the second half of the yearhellip;.

Todays dismal PMI figures clearly indicate that the euro zone economy remains in dire straitshellip;.European factories had their worst month since June 2009. Companies said their order books were shrinking and they were cutting jobs in reaction to falling demandhellip;.

There are no real drivers of growth here, which suggests that although the overall rate of decline is modest at the moment, we could see it continue to worsen in coming months, said Chris Williamson, chief economist of PMI compiler Markit. (Euro zone slump deepens unexpectedly in April, Reuters)

Draghis debt consolidation and structural reforms have increased deflationary pressures and deepened the slump. Theyve been a total flop as anyone with half-a-brain could have predicted.

So, are we supposed to believe that the ECB president didnt know what the effect of his policies would be, that he didnt know that contractionary policies would result in economic contraction?

Of course, he knew. Draghis not an idiot; hes a very competent economist. This just shows that he had an ulterior motive, that the policy was crafted to serve the interests of his banking buddies and not those of the 99%. After all, the real purpose of austerity is not to cut deficits or spur growth, but to stuff government into a fiscal starightjacket so that private industry and big finance get a bigger slice of the pie. Isnt that what this is really all about?

Sure, it is. Austerity is just the euro-version of starve the beast.

By Mike Whitney

Email: fergiewhitnesn.com

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.

copy; 2012 Copyright Mike Whitney – All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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Debt consolidation can help people with multiple debts to manage them more effectively, with one monthly payment instead of many. You can consolidate
debts if you have bad credit, but the right way to consolidate them depends on your situation.

Debt consolidation doesnt have to mean debt consolidation loan – there are various different ways to bring your debts together so you make just
one payment towards them per month.

Debt consolidation loan

A debt consolidation loan pays off all your existing unsecured debts, leaving you with one larger loan and one repayment to make per month.

It can make your debt repayments more affordable if you spread them over a longer period, but youll be paying your debt back for longer – and that
might mean you end up paying more interest too.

Youll only be able to get a debt consolidation loan if you can afford the monthly repayments and your credit rating is good enough. If you have bad
credit, lenders might not feel confident youll repay the money. A debt consolidation loan, therefore, is probably more likely to help someone with a
fair-to-good credit rating.

Enter your details here to apply for a debt consolidation loan.

However, there are other ways to consolidate debts into one payment per month with bad credit.

Debt management

Debt management is a type of debt consolidation offered by debt management companies: you pay them one sum every month (which includes their fee) and
they pay off each of your unsecured lenders for you.

Debt management is a new agreement you could come to with your unsecured lenders when you need to lower your monthly payments. You can do this by
spreading your repayments out over a longer period, which does leave you in debt for longer.

It damages your credit rating for six years when you lower your repayments and can increase the amount of interest you repay overall. Debt management
is more likely to help someone with a poorer credit rating.

Click here to get a debt adviser to call you and tell you about debt management.

IVA (Individual Voluntary Arrangement)

An IVA is a legally binding arrangement you could come to with your lenders when you cannot afford to repay your unsecured debts in full. Under the
arrangement you repay whatever you can afford and your lenders write off the rest when your IVA reaches a successful conclusion. Lenders dont have to
agree to an IVA, but if they do and youre a homeowner, you might have to release equity to help you repay as much as you can afford.

An IVA is another sort of debt consolidation, because you make one payment every month for the full term of the IVA. However, an IVA is a form of
insolvency and it has a big impact on the credit records of people who enter into one. At the same time, unlike a debt consolidation loan or debt
management, you would not have to repay your unsecured debts in full when you enter into an IVA.

An IVA is most likely to help people with bad credit and a lot of debt that they cannot afford to repay in full.

In summary, there is more than one way to consolidate your debts and the right option depends on your personal circumstances.

Enter your details here to speak to a debt adviser about your debt consolidation options.

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