Consolitation of Debts

The American markets crashed which lead to a significant crash leading to sub prime crisis and following that markets around the world crashed. All this happened because the purchase power of the American citizen of the United States of America declined. This was caused because many lending institutions had bad debts which lead to their bankruptcy and followed by the sub prime crisis.

The Federal Exchange Department took steps by reducing the lending rates which could lower the effect of the sub prime crisis.

But who suffered most and still suffering?

Its the average American household which got caught into this debt scenario and their bad credits increased, plus there was increase in their debts. All this lead to their lower spending and lower purchase. This was the main cause for the sub prime crisis in the United States which lead to the weakening of the Dollar and to the crash of global markets.

So Steps to reduce the debts must be taken by he government. They must facilitate the common masses to get some mechanism of consolidating their debts. Online debt consolidation mechanisms must be ensured to help reduce the debts from the citizens and a strong framework of ensuring that the credit ratings are in perfect shape and debts are lowered.